Hydatid disease is an endemic and common zoonosis in India. Liver is the most common site of infection. However, extra hepatic primary pancreatic hydatid cyst is rare. We report a case of primary hydatid cyst in the tail of pancreas compressing the adjacent organs in a 43-year-old male who presented with abdominal mass and was diagnosed as pancreatic cyst/splenic cyst by ultrasonography. Computed tomography of abdomen revealed a large cystic lesion in the tail of pancreas suggestive of a pseudocyst of pancreas. The case was managed surgically by splenectomy and distal pancreatectomy with albendazole therapy. Microbiological Investigations of aspirated fluid revealed free hooklets and invaginated scolices of Echinococcus granulosus, which was correlated with histopathological findings.