Checkpoint inhibitors such as pembrolizumab, an anti‐PD‐1 monoclonal antibody, are a promising new category of oncological therapeutics, associated with a higher risk of immune‐related adverse events including dermatological, autoimmune and endocrine sequelae. Here, we present a case of a woman 76 years of age with stage IV lung adenocarcinoma who developed a severe and steroid‐refractory lichenoid dermatitis associated with pruritus on pembrolizumab. This eruption resolved completely with a short course of oral cyclosporine. Cyclosporine is a promising and effective treatment option for checkpoint inhibitor‐related severe cutaneous eruptions.