The Gamma nail, an intramedullary nail that is combined with a sliding hip screw, has recently been introduced as an alternative method of treatment for peritrochanteric fractures of the femur. We report a case of a postoperative femoral fracture that occurred in the area of the device after Gamma nailing of a stable intertrochanteric fracture. A review of the literature reveals that postoperative fracture is not an uncommon complication of Gamma nailing. This complication results in a difficult management problem. The possibility of a femoral fracture around the Gamma nail should be entertained before the use of the nail is considered. The availability of alternative fixation devices must be confirmed in the event that such a fracture is encountered.