For recurrent lateral patellar instability surgical algorithm, an arthroscopic assessment of patellar tracking can aid with the decision of adding a tibial tubercle transfer procedure based on knee flexion angle at which patella centrally engages in its groove. Tibial tubercle-trochlear groove distance is variable in normal values and has discrepancies between imaging modalities. The aims of our study were to assess correlation of arthroscopic patellar tracking technique with recurrent patellar instability, and to assess the accuracy and reproducibility of this technique. 157 patients were evaluated, 64 control patients with no patellar instability, and 93 patients with recurrent patellar instability. This included 57 consecutive knee arthroscopy procedures evaluated for accuracy and reproducibility of our technique. The technique involved low flow arthroscopy and anterolateral viewing portal. Patients' knees were extended from a flexed position of 120°, and paused when the patella disengaged from its groove. The KFA was then estimated by the primary surgeon, and compared with a goniometer measurement. The assisting surgeon, blinded to the primary surgeon measurements, repeated this process. For the primary outcome, goniometer readings for KFA from the primary surgeon were used to correlate with patellar instability diagnosis. Patients with patellar instability had a mean KFA of 118° compared to 44°for patients without patellar instability (p < 0.001). The mean difference between goniometer reading and estimation of KFA by each surgeon was 5° (p < 0.001) with intra-class correlation of 0.99. The mean difference between the two surgeons' goniometer readings was 8° (p < 0.001) with intra-class correlation of 0.99. This study confirms arthroscopic assessment of patella tracking is accurate, reproducible, and a knee flexion angle of greater than 44° correlates with patellar instability diagnosis. Patella tracking can be used as an adjunct or an alternative assessment method to tibial tubercle-trochlear groove distance to determine the need for tibial tubercle transfer in patellar stabilisation surgery. Prospective Cohort Study, Level III.