The incidence of skin cancers is low in India when compared to the western world. Malignant transformation of discoid lupus erythematosus (DLE) is a rare entity. Most common site is head and neck. Our case reported is a disseminated DLE with malignant transformation to squamous cell carcinoma (SCC) of a lesion over arm with axillary node involvement. We proceeded with wide local excision and axillary node dissection.