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Soft tissue masses of the lower extremity are a commonly encountered pathology for foot and ankle surgeons. Ganglion cysts are the most common of the benign soft tissue lesions found in the lower extremity. Sarcomas on the other hand are a more concerning relatively rare neoplasm in the foot and ankle. Chronic expanding hematomas are a less discussed soft tissue lesion that may mimic the presentation of soft tissue sarcomas. In 1980, Reid and colleagues were the first to use the term “chronic expanding hematoma” to describe these persistent blood filled lesions that increase in size slowly over the course of months. These soft tissue masses commonly present after a surgical or traumatic event and often lay dormant for many months, slowly increasing in size. A search of the foot and ankle literature revealed sparse information regarding this type of soft tissue mass. We present an interesting case of an encapsulated chronic enlarging hematoma following a hallux amputation in a 58 year-old female and a review of the literature.