Instruments for use in minimally invasive carpal tunnel release include a cannula and a cutting member movable longitudinally within the cannula to advance a cutting blade of the cutting member along a longitudinal slot in the cannula to sever a transverse carpal ligament disposed over the slot. A dilating member is provided for creating a subligamentous space to accommodate the cannula and/or for removing adhered synovium from a lower surface of the ligament. A method for minimally invasive carpal tunnel release involves establishing a subcutaneous pathway to the carpal tunnel from an incision in the forearm, introducing the cannula in the carpal tunnel via the pathway, and severing the transverse carpal ligament with the cutting blade of the cutting member, all of which steps are performed under direct endoscopic visualization.