An arthroscopic inflow and outflow sheath providing an improved inflow and outflow system reducing the diameter of a continuous flow system while providing fluid management during arthroscopy. The improved arthroscopic inflow and outflow sheath comprises an elongated atraumatic tube having an inner surface, outer surface, proximal end, and distal end. The atraumatic sheath further comprises a plurality of ribs extending from the inner surface of the tube and designed to contact an outer surface of the arthroscope thereby creating outer lumens facilitating the inflow and outflow of fluid to a surgical site. The distal tip of the tube is made of an elastic material having a higher modulus of elasticity than the modulus of elasticity in the material of the proximal end of the tube.