Instruments for use in minimally invasive carpal tunnel release include a cannula and a cutting member movable longitudinally within the cannula to advance a cutting blade of the cutting member along a longitudinal slot in the cannula to sever a transverse carpal ligament disposed over the slot. A dilating member is provided for creating a subligamentous space to accommodate the cannula and/or for removing adhered synovium from a lower surface of the ligament. A method for minimally invasive carpal tunnel release involves establishing a proximal entry into the carpal tunnel from an incision in the volar aspect of the forearm, introducing the cannula in the carpal tunnel via the incision, and severing the transverse carpal ligament from proximal to distal with the cutting blade of the cuffing member under direct endoscopic visualization.