The Grizzlies announced that the transplant was being performed Wednesday at the Hospital for Special Surgery in New York by Dr. Riley Williams.
Adams played two games before hurting cartilage in the same knee. He had surgery Jan. 12 before a lengthy rehab program trying to return to basketball.
But he couldn't play without pain, and Adams and the Grizzlies' medical staff decided the guard needed a cartilage transplant.
General manager Chris Wallace called the surgery "difficult news" and said the Grizzlies hoped the procedure would help the 22nd pick overall in the 2014 draft out of UCLA return to the court.