An arthroscopic cutting probe includes an outer sleeve having a longitudinal bore and an outer cutting window at its distal end. The outer sleeve has a metal body electrically insulated over its exterior except for a portion at least partially surrounding the outer cutting window which comprises an active electrode. An inner sleeve is rotationally disposed in a bore of the outer sleeve, and the inner sleeve has a distal end, a proximal end and a longitudinal passageway having an electrically conductive inner surface which comprises a return electrode. A dielectric cutting member is attached to the distal end of the inner sleeve and has a central passage extending from an inner cutting window at its distal end to an opening at its proximal end. The opening at the proximal end is contiguous with the longitudinal passageway in the inner sleeve, and rotation of the inner sleeve relative to the outer sleeve causes the inner cutting window to rotate past the outer cutting window to resect tissue received through the cutting windows as they pass each other.
