A reduction tool for use in posterior spinal fixation to facilitate insertion of a longitudinal spinal rod into a rod-receiving channel formed in a bone fixation element. The reduction tool preferably includes an outer tube sized and configured to transversely receive the spinal rod therethrough, the outer tube being operatively coupled to the bone fixation element, an inner tube operatively coupled to a locking cap and slidably disposed within the outer tube, and a rotatable sleeve for rotatably advancing the inner tube with respect to the outer tube to advance the spinal rod into the rod-receiving channel formed in the bone fixation element and to couple the locking cap to the bone fixation element to thereby secure the rod within the bone fixation element.