Patients who present with global capsular laxity and glenohumeral instability frequently can be treated successfully with shoulder girdle musculature strengthening exercises and activity modification. When such injury is caused by a paralytic shoulder, a rehabilitation program may not be a viable treatment option. Presented in this article are 3 patients with global capsular laxity and glenohumeral instability as a result of shoulder paralysis. We also describe an arthroscopic technique of thermal capsulorrhaphy. In our experience, arthroscopic thermal capsulorrhaphy used to treat global capsular laxity and glenohumeral instability resulting from a paralytic shoulder has decreased symptoms of shoulder instability and has significantly reduced shoulder pain.