A 12 yr old male castrated miniature Australian shepherd dog presented for surgical consultation of historical bilateral medial patellar luxations with a 3 mo history of an acute onset of a left pelvic limb lameness. Physical examination confirmed medial patellar luxations and a mass effect of the left stifle medially. Radiographs showed medial distension of the joint capsule by a soft tissue opacity. Fine-needle aspirate of the left stifle revealed a mesenchymal cell population. Left medial parapatellar stifle arthrotomy found a fatty mass, which was excised at its base. A benign fibrolipoma was diagnosed on histopathology, and the excision was expected to be curative. The owners reported immediate improvement of perceived comfort postoperatively. At 2 and 24 wk, the dog returned to a normal level of function. Lipomas of the stifle, although rare, should be considered as a differential for intra-articular masses causing lameness.