Yes, the tremolo will work perfectly. Just loosen the strings enough so you can pull out the stock Jaguar/Jazzmaster bridge and just drop in the Mustang bridge. It's a perfect fit. The thing to consider is that the individual saddles on the Mustang bridge can't be raised like the saddles on the Jag/Jazz bridge. They have a fixed radius, so once you drop in the Mustang bridge you'll have to adjust the bridge height like savofenno stated above. It's really simple to do. For what it's worth, today I received a Mustang bridge that I ordered from Darren Rileys on Friday and I just finished installing it on my Squier VM Jaguar. Just cost me $40 bucks and change with shipping. No rattling, no string jumping, and it's perfectly stable. Stays in tune even with heavy tremolo use and still retains that Jaguar sound. You could spend the $$$ on a Mastery bridge, but the Mustang bridge is an affordable option, especially for the Squier Jags and Jazzmasters. Well worth it unless you happen to like the vintage style bridge.