The aim of this study was to compare real time spatial compound ultrasound (RTCS) and conventional ultrasound with MRI in the evaluation of meniscal injuries. Thirty five patients with clinical suspicion of meniscal injury underwent ultrasound of knee alternating between conventional and compound sonography followed by MRI of the knee on a 1.5 T MR system. The images were compared for their quality and ability to detect meniscal tear. Compound ultrasound significantly improved definition of soft tissue planes, reduced speckle and other noise, improved contrast resolution (p value<0.05) with improved confidence in detection of tears in doubtful cases. Interobserver variability was seen only for conventional ultrasound and the sensitivity, specificity, accuracy were 83.3%, 87.5% and 85.7% for the first observer and 80%, 87.5% and 84.3% for second observer. For compound ultrasound it was same for both the observers with sensitivity, specificity and accuracy being 90% each. Although compound ultrasound improves image quality in the evaluation of meniscal injuries the benefit with respect to detection of tears is only marginal. It is a valuable tool for screening the patients before MRI and we recommend that instead of conventional ultrasound, compound ultrasound should be routinely used for sonographic evaluation of meniscal injuries.