Pilomatrocoma is a benign skin tumor that arises from the hair follicle, typically affects the head, neck, and extremities especially in pediatric age group. It manifests during the first two decades of life. In terms of clinical presentation, it usually presents as a hard, moveable and well-defined nodule. Under a microscope, it is distinguished by the existence of shadow cells and occasionally calcification; nonetheless, widespread ossification is uncommon. Given the extremely low recurrence rate, surgical excision is the preferred course of treatment. We report a case of a 29-year-old male patient clinically diagnosed as sebaceous cyst of the right arm.