Bilateral optic disc edema is usually a late manifestation of vestibular schwannoma. Raised intracranial pressure due to obstructive hydrocephalus or a large mass lesion are the known causes. We report a case of a 55-year-old female with decreased vision and bilateral hemorrhagic grade 5 papilledema. MRI revealed a small vestibular schwannoma (<2.5 cm) with mild communicating hydrocephalus. Intraoperative CSF pressure was high most likely due to raised protein level in CSF (1 g/L). Bilateral hemorrhagic grade 5 papilledema causing diminution of vision in a case of small vestibular schwannoma with communicating hydrocephalus prompted us to report this case.