Meniscal cysts are located at the rim of the meniscus and are in most cases associated with a horizontal meniscal tear. They are divided into two main groups: either as an enlargement of the meniscus rim (intrameniscal cyst) or as an extrusion into the parameniscal tissue (parameniscal cyst). The incidence ranges from 1.8% to 20% and are most common in young and middle-aged persons. Pain is the common symptom. A lateral or medial mass may sometimes be palpable. Diagnosis is based on magnetic resonance imaging to determine the location and size of the cyst, as well as assessment of an associated meniscus tear. Treatment can be non-surgical with ultrasound-guided puncture and corticosteroid injection. Surgical treatment is another option and has a low recurrence rate, of less than 10%. It includes knee arthroscopy to treat the meniscal lesion. The cyst can be decompressed during the arthroscopy, or an open cystectomy can be performed.