The axillary nerve arises from the posterior cord of the brachial plexus, deriving from cervical nerves C5 and C6. It supplies the deltoid and teres minor muscles. It passes through the quadrilateral space behind the humerus and divides into anterior and posterior branches. The anterior branch innervates the deltoid muscle. The posterior branch supplies the teres minor and posterior deltoid, and continues as the lateral cutaneous nerve, providing cutaneous innervation to the lateral arm. Injury results in paralysis of the deltoid and teres minor, causing weakness of shoulder abduction, flexion, extension and rotation.