A tissue cutting device especially suited for neurosurgical applications is disclosed and described. The device includes a handpiece and an outer cannula in which a reciprocating inner cannula is disposed. At least one position transducer for tracking a location in space of the tissue cutting device is rigidly associated with the handpiece. The position transducer is operable for sending a signal indicative of a location of a distal end of the outer cannula. The tissue cutting device may also include an angular position sensor for determining an angular position of the outer cannula relative to the position transducer.
