A reduction instrument is releasably engageable with a bone anchor and structured to reduce a connecting element into a receiving member of the bone anchor. The reduction instrument includes a first member, a second member pivotably coupled to the first member, an offset anchor engaging portion, and a reduction member axially displaceable relative to the first and second members. A passage may be positioned between the first and second members which includes a laterally enlarged portion positioned proximal to the anchor engaging portion. The reduction member may include a guide member movable along a first interior surface of the first member and facing the second member as the reduction member is axially displaced relative to the first and second members. Methods of use are disclosed.
