Congenital dacryocystocele is an uncommon entity that results from a malformation of the nasolacrimal system, occurring predominantly in neonatal females. It may resolve spontaneously but can be associated with potentially serious complications as acute dacryocystitis, requiring referral to an ophthalmologist. Bilateral cases of congenital dacryocystocele are rarely reported. We present a case of acute dacryocystitis occurring in a female newborn with bilateral congenital dacryocystocele who presented with bilateral epiphora and a mass in the right medial canthus since birth. Computed tomography revealed a bilateral soft tissue lesion in the medial canthus of the ocular globe. Dacryocystocele progressed to secondary infection on the right and patient developed acute dacryocistitis. She was admitted to the hospital for intravenous antibiotic therapy followed by the nasolacrimal system probing. This case report is also important to address the management of congenital dacryocystocele, and the decision to carry out the most suitable treatment, considering the diverse therapeutic options.