Hammer toe deformity is a highly prevalent lesser toe deformity and accounts for a high proportion of appointments to foot and ankle clinics. Its etiology is due to extrinsic and intrinsic muscular imbalance, attenuation and subsequent rupture of the plantar plate, and neuromuscular disorders. This leads to marked flexion of the proximal interphalangeal joint and extension of the metatarsophalangeal joint. Effective diagnosis requires robust clinical examination and radiographic imaging or MRI. This article discusses the anatomy, etiology, and management of hammer toe deformity using percutaneous surgical techniques, as well as a treatment algorithm.