Cranial fasciitis is a rare variant of nodular fasciitis, which is seen exclusively in infants and childhood, mainly in the head and neck region. It is considered as non-neoplastic lesion similar to nodular fasciitis.A 5 months old male child presented with a rapidly growing swelling in the forehead, since three months. No other complaints. CT scan revealed erosion of the outer table of cranium and radiologically diagnosed as Dermoid cyst. The swelling was excised. Histologically it showed more cellular areas, forming storiform pattern with myxoid areas and bony metaplastic change. Few osteoclastic giant cells seen and was diagnosed as cranial fasciitis of childhood. The cranial fasciitis should be considered as one of the differential diagnosis or differentiated from fibromatosis that tend to recur locally, unlike nonrecurring behavior of these lesions in childhood.