Endocapsular (intercapsular) cataract surgery has recently gained popularity, particularly in Europe. We describe our technique of endocapsular cataract extraction and insertion of an intraocular lens and prospectively compare 93 eyes which underwent endocapsular cataract extraction with 83 which underwent a standard extracapsular procedure. There was no apparent difference between the two groups in visual outcome. Preoperative and post-operative complications were more common in the endocapsular group: posterior synechiae formation in the latter occurred in 19%. In 90% of the endocapsular cataract extractions, the lens was placed 'in the bag' at the time of surgery but at three months only 53% remained 'in the bag'. Displacement of one haptic from the capsular bag was associated with symptomatic lens decentration requiring repositioning in four eyes in the endocapsular group and two eyes in the extracapsular group.