Dermoid cyst (DC), a rare benign tumor of developmental origin that develops from mesoderm and ectoderm, is frequently identified in children. DC refers to three cysts that are histologically related, namely, DC, epidermoid cyst, and teratoma. About 70% of DCs are discovered in children aged five years or younger, with the majority being congenital. DC of the head and neck are rare, accounting for only 7% of all such cysts. DC, or benign cutaneous tumors, tend to grow and persist. The presence of epithelial cells along the lines of embryonic closure results in a DC. It is always difficult to properly diagnose these lesions using clinical tests and conventional radiography. Histologically, a DC must have two germ cell layers, and the diagnosis can only be made with pathologic confirmation. Specialized imaging tests including CT, MRI, ultrasonography, and histological examinations should be performed to make a diagnosis and choose the best course of action for surgery.