Lipoma is a quite common type of soft-tissue tumor, but it is rarely found in the hand. Hand lipomas are generally asymptomatic; however, when they become too large or when they are present in some specific location, they can cause symptoms due to compression of the median nerve. These tumors must be correctly characterized preoperatively with imaging exams and the proper management is the complete removal of the tumor and release of the median nerve. The authors present the case of a female patient with carpal tunnel syndrome due to compression of the median nerve by a giant palmar lipoma, successfully treated with tumor excision and nerve release.