Multidirectional glenohumeral instability secondary to ligamentous laxity, capsular redundancy, and excessive joint volume occurs frequently. Traditional treatment programs have included conservative care, physical therapy, open surgical stabilization, and arthroscopic techniques. The laser-assisted capsular shift procedure uses low-dose, subablative laser energy to cause shrinkage of the shoulder capsule, The shrinkage of the shoulder capsule results in a decrease in glenohumeral volume improving glenohumeral stability The Holmium:YAG laser appears to be a useful instrument for the arthroscopic treatment of glenohumeral instability Holmium:YAG laser energy can be used to thermally modify capsular tissue to cause a reduction in its length without detrimental effects to the viscoelastic properties of the tissue. Early clinical reports have been promising and further follow-up is required to assess the long-term outcome of this procedure.