Evaluation of peripheral nerves, both clinically and with imaging, is critical in the evaluation of patients with extremity soft tissue sarcomas. If an essential peripheral nerve is felt to be adjacent to a soft tissue sarcoma but not circumferentially surrounded, it can usually be salvaged using the technique of epineural dissection in the setting of adjuvant radiation. If, however, a critical nerve is circumferentially involved with tumor, it must be sacrificed for the sake of local control. Various reconstruction techniques are available in this situation, including nerve grafting, distal nerve transfer, and tendon transfer, with each technique having specific indications. Regardless of the technique, it is important to inform the patient that normal extremity function is not likely to be achieved. The issue of nerve involvement therefore becomes a critical factor in determining the possibility of limb salvage in borderline cases. For the situation in which postoperative function is already expected to be compromised due to vascular, bone, or extensive soft tissue resection, nerve resection may be the ultimate deciding factor in recommending amputation rather than limb salvage.