This study was designed to investigate the effects of kinesio tape (KT) on functional performance of female basketball players with and without chronic ankle instability (CAI). The players with (n = 15) and without ankle instability (n = 16) were enrolled. KT was applied with tension in the instability group and without tension in the control group. Before KT application, 30 minutes and 48 hours after application; muscle strength and endurance were tested in plantar flexion and dorsiflexion, joint position sense was measured in ankle dorsiflexion and plantar flexion using a dynamometer. Dynamic postural stability was evaluated with a balance system between the levels of 12-4. Vertical jumping heights were measured by jump-meter. The results were statistically assessed by SPSS 19 version. In CAI group, dynamic postural stability showed statistically significant improvement in both legs overall (P < 0.0001), antero-posterior (P < 0.004) and medio-lateral indexes (P < 0.009). CAI group showed significant improvements in one-leg postural stability overall, antero-posterior and medio-lateral indexes after 48 hours (P < 0.011, P < 0.022, P < 0.038, respectively). Joint position sense, vertical jump height and muscle strength and endurance were also compared in both groups, and there was no significant difference between the groups. Postural stability indexes were decreased by supporting function of KT to the ankle. As a result, we can say that KT has a beneficial effect on maintaining posture by correcting standing kinematics in cases with CAI. We may suggest that KT can be utilized in preventing the injuries in CAI.