Background: The role of routine frozen section (FS) in the surgical management of thyroid nodules remains uncertain. This study reviewed the role of FS in the presence of an adequate ®ne-needle aspiration biopsy (FNAB).Methods: FNAB and FS were evaluated in 206 patients who had surgery for a thyroid nodule. Cytological specimens were classi®ed as benign, malignant or suspicious. The FS diagnoses were benign, malignant or deferred.Results: A cytological diagnosis was obtained in 93 nodules; the remaining 113 were classi®ed as suspicious, of which 21 were malignant on de®nitive examination. The overall accuracy of FNAB was 53 per cent. FS evaluation identi®ed 165 lesions as benign; the diagnosis was deferred until de®nitive histological evaluation in only eight. The overall accuracy, therefore, was 96 per cent. Routine use of FS was cost-effective; lowering the number of reoperations led to an estimated saving of about 40 per cent.Conclusion: These data suggest that FS remains an important tool in the surgical management of thyroid nodules and can reduce the number of patients requiring reoperation.