A surgical scalpel, scalpel instrument and/or scalpel system (collectively, scalpel), is configured for use in a transverse carpal ligament surgical procedure. The scalpel evaluates an incision path with respect to a nerve in the incision path, and performs the incision if appropriate. The scalpel emits a signal through a potential incision path through tissue captured by the scalpel. The scalpel utilizes the emitted signal to determine whether a nerve is in the incision path. The surgical instrument includes a retractable blade. Evaluation includes determining whether a nerve is present before incision and/or evaluating whether the target tissue has been appropriately captured. A warning is provided when a nerve is in the incision path and/or the captured target tissue is inappropriate. The surgical instrument disables extension of the blade when a nerve is in the dissection path and/or the captured target tissue is inappropriate.