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Sebaceous carcinoma of the eyelid is an uncommon malignant adnexal neoplasm accounting for 1 - 5.5% of eyelid malignancies. Diagnosis and therapy of their aggressive malignancy often get delayed since it is often misdiagnosed both clinically and histopathologically because of its varied clinical appearance and deceptive histopathological features. In this case report, we discuss one such rare occurrence of sebaceous carcinoma in the lower eyelid of an elderly lady aged 70 years along with the key diagnostic features and differential diagnosis