Objective To discuss the differential diagnosis and treatment of bursitis around the knee. Methods 32 patients with bursitis around the knee were treated from March 2000 to March 2002 in our hospital. Their diagnosis and treatment were reviewed. The arthroscopy of knee confirmed all the initial diagnosis of the patients made by the physical examination and complaints. We gave them conservative treatment and analyzed the clinical follow ups. Results All the patients were followed up for 8 to 40 weeks. 9 of them who had no internal knee lesions but only one kind of bursitis healed within 3 weeks. 23 of them who had more than two kinds of bursitis (including four who had internal knee lesions) healed within 3 to 5 weeks. Conclusions The differential diagnosis of the bursitis around the knee can be made on the basis of complaints and physical examination. These cases can be managed by conservative treatment.