Implant malalignment is a major cause for early loosening, increased wear, painful limitation of motion, and patient dissatisfaction in total knee arthroplasty. Validated diagnostic algorithms and a deeper understanding of the pathological mechanisms underlying functional deficits and pain resulting from malalignment explain the increasing number of revision operations on unloosened prostheses, which are now nearly as common as revisions for implant loosening. Common reasons are component malpositioning are a shifted joint line, or a non-physiological patella position. The success of any revision procedure basically depends on: (1) correct component positioning, (2) equal and symmetrical flexion and extension gaps, (3) restoration of joint line, and (4) a physiological patella height. The adequate grade of implant constraint has to be determined intra-operatively. A higher loosening rate of constrained implants as well as increased wear and painful limitation of motion in case of instability have to be taken into account. In the present work, a diagnostic and therapeutic algorithm for malalignment of knee prostheses is presented.