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Phaeohyphomycosis refers to infection of tissues by dematiaceous fungi which occur most commonly due to traumatic inoculation of fungi. A host reaction to these fungi can ultimately lead to the formation of a cystic cavity or abscess. Here we present a 71 year old woman who presented with a nodular swelling over the left elbow. A surgical excision was performed. On histopathological examination she was found to have a subcutaneous phaeomycotic cyst..