A system for transdermal repair of soft tissue includes an instrument (10) comprising a proximal actuator portion (12), a fixed needle (16) having a lumen (49) and extending distally from the proximal actuator portion, and a movable needle (18) having a lumen (44) and extending distally from the proximal actuator portion. The movable needle is movable axially between an advanced position and a refracted position relative to the proximal actuator portion. A suture needle (24) is disposed within the lumen (44,49) of one of the fixed and movable needles, and has a length of suture (34) connected thereto. Needle graspers (36,48) are disposed in the lumen of each needle, for securing the suture needle (24) and assisting in the transfer of the suture needle from one needle to the other to complete a suture passing step.