A surgical instrument and method are provided for positioning an osteochondral plug within a bone defect site. The instrument includes an elongate shaft, a ribbon, an elongate sleeve and a locking mechanism. The shaft has proximal and distal ends, with the distal end being shaped to contact the osteochondral plug. The ribbon extends along two sides of the shaft and around the distal end, forming a loop that is used to secure the osteochondral plug to the distal end. The sleeve is movably mounted to the shaft for reciprocating relative thereto between retracted and extended positions. The sleeve includes a slot that allows for visualization and cutting of the ribbon. The locking mechanism locks the ribbon in place and thereby controls the size and tension of the loop that surrounds the osteochondral plug, securing it to the distal end of the shaft.