In a method for laparoscopic hernia repair through the preperitoneal space of a patient having an abdominal area with overlying tissue and a peritoneum with a preperitoneal area being disposed between the overlying tissue and the peritoneum using laparoscopic apparatus of the type having an introducer device with a tubular member having a bore therein, a tunneling assembly disposed in the bore and a balloon wrapped about the tunneling shaft and a removable sleeve enclosing the balloon, the method comprising the steps of making an incision in the abdominal area, introducing the laparoscopic apparatus into the incision so that the tubular member of the introducer device is disposed in the preperitoneal area, advancing the tunneling rod with the balloon thereon to separate the overlying tissue from the peritoneum, removing the sleeve to expose the balloon, inflating the balloon with a balloon inflating medium to create a dissected preperitoneal space between the peritoneum and the overlying tissue, deflating the balloon, removing the balloon, insufflating the dissected preperitoneal space with a gas, introducing a graft into the dissected preperitoneal space, positioning the graft in the desired location, and deflating the preperitoneal space to permit the graft to come into contact with tissue overlying the peritoneum, removing the introducer device and closing the incision.