Histologic, ultrastructural, and horseradish peroxidase tracing studies have shown that the carbon dioxide laser does not, as previously reported, seal transected axons in peripheral nerves that are subsequently repaired. If sealed nerve ends are the desired effect, such as in treatment of painful neuromas, this experimental animal study in rats suggests that the laser may be contraindicated because of the possible retention of proximal nerve regenerative ability. For resections of peripheral neuromas followed by neurorrhaphy, our data indicate that conventional scissor transection of the nerve may be followed by better reinnervation than that of laser transection.