Epidermoid cysts commonly occur in the soft tissues in a subcutaneous location as a result of trauma or surgery. They are benign cystic lesions that have a good outcome after excision. Here we present a case of epidermal cyst of hand in 56 year old male patient. X-ray demonstrated a soft tissue swelling without bony involvement on the palmer aspect at the level of middle phalanx of the right middle finger. MRI report was suggestive of round to oval lobulated well defined lesion seen on the palmer aspect of right middle finger measuring 3.1x1.6 cm. We present its further management and review of literature.