Thickening of the fibrous element of a peripheral nerve may be caused by repeated friction, traction, constriction, ischaemia or partial rupture. The sequel may be a conduction disorder and a clinical condition such as an entrapment neuropathy or a tardy nerve palsy. Neural fibrosis is typically associated with a pseudoneuroma in continuity which has resulted from scarring and adhesions around the nerve as well as proliferation of the fibrous element within the nerve; the fibrosis may be classified as extraneural, intraneural or dispersive. We report 17 cases treated by external neurolysis, with 14 satisfactory results, and 42 patients treated by internal neurolysis with success in 37. Seven of the eight failures were in cases of dispersive fibrosis. A technique of internal neurolysis is described.