Purpose: Our purpose was the investigation of treatment outcomes of intracapsular femoral neck nonunion treated by subtrochanteric valgus osteotomy and dynamic hip screw stabilization. Methods: We conducted a prospective study of failed internal fixation in 27 adults with intracapsular femoral neck nonunion without preoperative evidence of femoral head necrosis. Treatment was by subtrochanteric valgus osteotomy and dynamic hip screw stabilization. The mean interval from femoral neck fractures to osteotomy was 1.5 years. Protected weight bearing until healing was advised. Results: We followed twenty-four patients for at least 2 years. All femoral neck fractures healed, with a union time of 5.1 ±1.3 months and all osteotomy sites healed, with a union time of 4.7±1.1 months. Progressive osteonecrosis of the femoral head in two patients (8%) was the only complication. Conclusions: Subtrochanteric valgus osteotomy and internal fixation with dynamic hip screw fixation is useful for treating femoral neck nonunion without preoperative femoral head avascular necrosis. Although outcome is usually good, possible femoral head osteonecrosis requires close observation.