Multidirectional instability of the shoulder is a complex problem because of intra articular and extra articular pathologies. This condition of the shoulder can be a difficult diagnostic and therapeutic dilemma for the shoulder surgeons. The exact diagnosis can be achieved with patient`s history and special physical examinations. Multiple factors need to be considered before the treatment of multidirectional instability is instituted, including the age, activity level, bone and soft-tissue pathologies, degree, direction, frequency, and etiology of instability. Treatment options can be physical therapy, arthroscopic or open surgery. Operative treatment is indicated when effective non-operative treatment has failed. Arthroscopic capsulolabroplasty is a reliable procedure, which not only provides capsular plication, but also detects and treats other intraarticular pathologies of the instable shoulder such as Superior Labrum Anterior Posterior and posterior labral tear. In this article, we discuss the clinical problems of treatment and the efficiency of several surgical techniques in multidirectional instability of shoulder.