An arthroscopic surgical instrument for repairing capsular disruption associated with shoulder dislocations and subluxations includes an elongated knife, an elongated sleeve which fits telescopically over the knife for sliding movement thereon, a staple adapted for insertion into the sleeve upon removal of the knife and an elongated tamper tool insertable through the sleeve for setting the staple in the shoulder joint.The orthopedic surgical procedure includes inserting an arthroscope into the shoulder for viewing the insertion of the knife into the shoulder capsule. The sleeve is then advanced down over the knife into the capsule whereupon the knife is withdrawn. The sleeve is then shifted to a position over the scapula bone to make a tuck in the capsule. A staple is then inserted into the sleeve and driven through the tuck into the scapula by a tamper tool. The tamper tool, sleeve and arthroscope are then removed from the shoulder girdle to complete the operation.