Osteoma of the temporal bone is an unusual benign slow-growing tumour composed of mature lamellar bone. It is a single pedunculated mass that often occurs unilaterally. Osteomas of external auditory canal are more common than in the other parts of temporal bone. Clinical presentation includes ear pain, hearing loss, tinnitus or vertigo. More often these lesions are an incidental finding during radiographic evaluation. Surgical excision of the osteoma is preferred in cases with impending complications. Here, we report a 36-year-old woman who came with problems of ear discharge, ear pain, hearing loss and occasional bleeding from the ear. She was diagnosed with osteoma of temporal bone with erosion of lateral semicircular canal and facial canal. Osteoma was excised and the defective areas were reconstructed.