Milling and drilling tools and soft tissue management techniques are provided for arthroplasty that facilitate intraoperative and postoperative efficacy and ease of use. In one embodiment, resiliently biased soft tissue protective sleeves surround a side cutting tool and are interposed along the longitudinal axis of the cutting tool, preferably adjacent each side of the bone. The soft tissue protective sleeves are biased to track along the contour of the side of the bone and prevent the cutting tool from being exposed to soft tissue during the resection. In another embodiment, a pilot drill is initially utilized to create an initial bore in the bone to be resected. The pilot drill preferably has an end cutting arrangement and a non-cutting removal channel that minimizes the tendency of the pilot drill bit to drift off-axis as the initial bore in the bone is created. Once the initial bore is created, the pilot drill bit is withdrawn and a second side cutting tool, such as a milling bit, is then inserted into the bore to perform the desired surface resection.