Mucoid degeneration (MD) of the meniscus can appear in one of the two pathological forms: stromal MD and cystic parameniscal degeneration. Proposed etiologic factors are endogenous and exogenous trauma, endothelial inclusions in the cartilage during its development, chronic infection with hemorrhage and intraparanchymal hemorrhage, and mechanical stresses. Medial involvement is more frequent and is usually confined to the body of the meniscus. However, lateral involvement may appear as cystic swelling. When the menisci affected by MD are torn, the diagnosis may be delayed due to the lack of history of trauma and to relatively less severe symptoms. Cystic mass is most prominent at 45° of flexion and disappears in full flexion and full extension. External rotation of the leg at 45° of flexion is further helpful for diagnosis. The recent treatment strategy is arthroscopic meniscectomy and marsupialization of the cyst.