Hydatid cyst is a very significant health problem in India. As recorded in the literature, majority of hydatid cysts are found in the liver followed by the lungs with an incidence rate of 60-70% and 10-15% respectively. Cystic hydatid disease in bones is seen in less than 4% of cases, with majority presenting in the spine. In this case report we have discussed primary intraspinal extradural hydatid cyst with paravertebral extension (dumbbell shaped) in lumbar vertebra which is a rarity. The diagnosis was established intraoperatively based on the findings with a follow up and review of literatures, along with its management.