Paraesthesia or anaesthesia is a well-documented complication following mandibular third molar surgery. This retrospective study was designed to investigate the occurrence of nerve morbidity following surgical removal of mandibular third molar and to determine the factors that may influence or contribute to it. Records of 178 patients who attended the Oral and Maxillofacial Surgery Clinic, Faculty of Dentistry, Universiti Kebangsaan Malaysia or Hospital Universiti Kebangsaan Malaysia for removal of their mandibular wisdom teeth from January 1998 to December 2002 were selected. Results showed that 3.4% inferior alveolar nerve morbidity was noted in the form of temporary paraesthesia. Inferior alveolar nerve morbidity was greater with mesioangular impaction and when the teeth were removed under local anaesthesia. The mean age of patients with nerve morbidity was 32.2 years old.