Annular atrophic lichen planus (AALP) is a rare variant of lichen planus. It is differentiated from other variants of lichen planus by a reduction of elastin fibers in the superficial dermis, which is a feature specific to this subtype. It has clinical features of both annular and atrophic lichen planus and has a chronic course. AALP does not usually respond to topical or systemic steroids, and a consensus regarding a treatment ladder is yet to be reached. Topical tacrolimus may be considered as a treatment option. Annular atrophic lichen planus is a relatively unknown condition, which may remain undiagnosed and difficult to manage, owing to a paucity of literature and lack of consensus on management.