We are presenting a rare case of Cystic Schwannoma which was masquerading as a dermoid .The patient was 23 year old male presented with a slow growing mass over his right supero-medial side of the orbit since last two and a half years. Examination showed a solid, non-tender, freely mobile mass of around 15 × 15 mm in the supero-nasal orbit, which was firm to hard in consistency, nonpulsatile, non-reducible in nature. CT scan of right orbit revealed a well-defined hypo attenuated skin based lesion in the right supraorbital region which measures 11.9 × 14.6 × 15.2 mm (AP × TRA × CC). A complete tumour resection was performed, and pathologic examination showed it as a case schwannoma of orbit. Schwannomas are infrequent tumours which arise from the orbit coming behind Inflammatory, vascular and lymphoproliferative diseases; treatment is complete resection of the mass with subsequent monitoring to prevent recurrence.