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Myelolipoma is a rare variant of lipoma which is a benign tumor. It mimics well differentiated liposarcoma clinically and on imaging studies. Postoperative histopathological examination plays an important role in diagnosing myelolipoma. We report a case of 50 year male with rare pre-sacral retroperitoneal myelolipoma which was challenging to differentiate from liposarcoma. Following surgical resection no further treatment was needed.