A surgical instrument for engaging, aligning and maintaining displaced bone fragments together in a reduced position. The instrument includes first and second lever arms pivotally attached to one another. The arms have a proximal end and a distal end with an engaging tip to grip the fractured bone fragments without interfering with the preparation and placement of the bone fixation device. An arm locking mechanism is configured to hold the engaging tips in a desired position relative to the bone fragments to maintain the fractured bone in a reduced position. An alignment guide is movably attached to one of the lever arms so that it can rotate through multiple axes. A removable guide sleeve is provided for the alignment guide to guide the orientation of drill bits, tap tools, and countersink tools used to prepare the bone fragments for placement of the fixation device in the fractured bone.
