The presence of subchondral bone cysts reflects degeneration or defects of the articular cartilage and elevated local stresses in the subchondral bone. We asked whether the presence of acetabular cysts deleteriously influenced the clinical and radiographic results of periacetabular osteotomy for treatment of dysplastic hips. We retrospectively reviewed 46 hips in 43 patients with cartilage narrowing who had periacetabular osteotomies. Of the 46 hips, 21 had acetabular cysts (cyst group) and 25 did not (control group). The average followups were 5.8 and 5.4 years in the cyst and control groups, respectively. We compared the Harris hip score and coverage of the femoral head between the two groups. The clinical results were similar between the two groups. There were no differences in radiographic evaluations between the two groups at the latest followup. In the cyst group, complete or partial healing of the cysts was observed in 17 of the 21 hips. A postoperative increase in the center-edge angle of 20 degrees or greater was found in 14 of the 17 hips. The preoperative presence of acetabular cysts did not influence the results of periacetabular osteotomy. Adequate rotation of the acetabular fragment induced cyst remodeling.