Background and Objectives: Studies analyzing magnetic resonance imaging (MRI) after simultaneously performing lateral meniscal allograft transplantation (MAT) and capsulodesis are currently rare. This study aimed to compare the MRI results between the group that performed lateral MAT alone and the group that performed both lateral MAT and capsulodesis simultaneously. Materials and Methods: A total of 55 patients who underwent lateral MAT with a 1-year follow-up MRI were included. The patients were divided into two groups according to the surgical procedure: group I (isolated lateral MAT, n = 26) and group C (combined lateral MAT and capsulodesis, n = 29). Differences between groups were compared regarding subjective knee scores, graft extrusion, graft signal, articular cartilage loss, and joint space width (JSW). Results: The subjective knee scores improved significantly in both groups (all, p < 0.001), and there were no significant differences in these scores between both groups at the 1-year follow-up. Group C showed less coronal graft extrusion at the 1-year follow-up (1.1 ± 1.7 mm vs. 2.4 ± 1.8 mm, p < 0.001). Pathologic coronal graft extrusion (≥3 mm) was found in seven (26.9%) patients in group I and three (10.3%) in group C. Concerning the graft signal, group C showed less grade 3 signal intensity in the posterior root of the graft. There were no significant differences in preoperative and postoperative cartilage status between groups. Regarding JSW, there were no significant differences in postoperative JSW between both groups. However, in group C, JSW significantly increased from 3.9 ± 0.4 mm to 4.5 ± 1.4 mm (p = 0.031). Conclusions: In lateral MAT, capsulodesis (open decortication and suture anchor fixation) could reduce graft extrusion without complications. In the future, large-volume and long-term prospective comparative studies are needed to confirm the clinical effects following capsulodesis.