Epidermoid cysts represent the most common cutaneous cysts. Epidermoid cysts are developmental, benign, cutaneous cysts which are commonly found on face followed by trunk and neck. They account for approximately 80% of follicular cysts of the skin. They are slow growing lesions and remain asymptomatic until or unless secondarily infected. They occasionally have tendency to develop into a malignancy. This article is to present a rare case of epidermoid cyst of the outer ear in a 30-year-old male patient. During clinical examination, a soft, cystic, globular, and non-tender swelling with restricted motility and well-defned margins was seen in the retroauricular region. Skin over the swelling was normal and not attached to it. The chosen treatment was total surgical removal. The histopathological findings confirmed the diagnosis of epidermoid cyst, characterized by presence of cyst cavity lined by cystic lining comprised of keratinized stratified squamous epithelium. Few sebaceous glands can also be seen. Revealing dense collagen fiber bundles interspersed with fibroblasts dense chronic inflammatory cells chiefly lymphocytes and plasma cells and endothelial lined blood vessels. Cystic lumen was filled with keratin. The proposed treatment was considered successful, as there was no recurrence.