Aims and Indications A paralabral ganglion cyst of the shoulder can cause neuropathy of the inferior branches of the suprascapular nerve. This can lead to atrophy of the infraspinatus muscle. Arthroscopic decompression of the cyst in combination with repair of the associated labrum tear appears to be an effective treatment option. Methods Initially the connection of the cyst to the joint in the area of the posterior rim of the glenoid is identified arthroscopically. Following the decompression of the cyst the labrum tear is repaired to avoid recurrence. The goal is the complete decompression of the ganglion cyst carefully protecting the infraspinatus branch. Concomitant intraarticular pathologies are also addressed. Conclusions In the literature arthroscopic treatment is superior to open surgical treatments. The degree of muscle atrophy at the time of surgery determines the prognosis for functional recovery. There is a lack of long-term outcome studies and publications of larger case series. Georg Thieme Verlag KG Stuttgart · New York.