We present our results of 211 patients with acoustic neuroma over a period of 10 years, 1988-97. We operated on 100 and 111 had Gamma-knife (GK) treatment (69 were available to follow-up). The results are excellent for surgery on small and intracanalicular tumours. In tumours of the same size, surgery and GK treatment give comparable, but somewhat different, results. In the GK group of 54 primary treated patients, 3 patients had to be operated on and another 4 developed hydrocephalus. A group of 35 acoustic tumours was observed for more than 3 years. Nineteen did grow (54%). Hearing was unchanged in 23%. We performed surgery in 11 patients and gave 2 patients GK treatment because of tumour growth of > 2 mm in diameter a year. We conclude that either treatment is effective for small and medium-sized acoustic neuromas. Hearing preservation was best in the GK-treated group (80%), compared to only 12.5% in the group operated via the suboccipital route. Larger tumours and most medium-sized tumours should be operated, as should smaller tumours with persistent symptoms of vertigo and pain. Medical contraindications to surgery or reluctance to undergo surgery make GK treatment a good alternative. Treatment of residual tumours with the GK could also be a solution to a difficult problem.