INTRODUCTION: Recurrent Temporomandibular Joint (TMJ) dislocation is a relatively common problem encountered in the oral and maxillofacial clinics. Multiple interventions and injections had been described in the literature for TMJ dislocation treatment. Ethanolamine Oleate is a sclerosing agent that can be used in the treatment of TMJ dislocation by creation of inflammatory reaction which induces fibrosis, formation of adhesion and scar formation in the surrounding soft tissues. OBJECTIVES: The aim of this study was to evaluate Ethanolamine Oleate injection in TMJ capsular and pericapsular tissue and its effect on the mouth opening in rabbits. MATERIALS AND METHODS: This experimental study was conducted on eight New Zealand rabbits (approximately 6 months old and weight 2-3 Kg). They were divided into two groups: Group One (Study Group): Eight of these rabbits were injected by Ethanolamine Oleate into their Temporomandibular Joints capsule and pericapsular tissues in the right side. (Group two): left side was acting as a control group. Each two rabbits were sacrificed at intervals of two, four, six and eight weeks. TMJ capsule and pericapsular tissues were dissected and prepared to evaluate the histopathologic changes. RESULTS: The pericapsular tissue area surrounding the Temporomandibular Joint area showed similar histopathologic aspects in all samples. In fact, the pericapsular area showed angiogenesis with presence of fiber, new formed bone and cartilaginous hyaline tissue confirming the diagnosis of fibroblastic activity followed by zone of endochondral ossification and trabecular bone mixed with bone structures. CONCLUSIONS: Ethanolamine Oleate injection is a safe, simple, cost effective treatment of TMJ dislocation with minimal post-operative complication and foreign body reaction.