An adjustable bent housing includes a first tubular body and a second tubul ar body. The second tubular body telescopically extends into the first tubular body and is maintained in relative axial position by a threaded engagement. A locking sleeve is provided to maintain the relative rotational position of the first tubular body and the second tubular body. The locking sleeve is non-rotatably coupled with and slidably movable the second tubular body between a locking position and an adjusting position. A locking nut is movable on the external surface of the second tubular body selectively clamps the locking sleeve in the locking position. This adjustable bent housing accommodates larger diameter drive shafts, while allowing adjustment to take place without changing the overall length of the housing.