Xanthogranulomatous cholecystitis (XGC) is a rare inflammatory disease of the gallbladder (GB) that is characterized by a focal or diffuse destructive inflammatory process. We present a patient with chronic liver disease with portal hypertension who had features of obstructive jaundice due to choledocholithiasis and a palpable mass in the right hypochondrium masquerading as an empyema/carcinoma of the GB. This presentation was preceded by cholestatic jaundice due to acute hepatitis E virus infection.