Abstract: Cutaneous infection with Paecilomyces lilacinus is encountered worldwide, with most infections occurring either iatrogenically or in immunocompromised hosts. A case of cutaneous hyalohyphomycosis caused by P.lilacinus is reported in an immunocompetent individual. A 53-year-old-man presented with a 9-month history of a slowly enlarging erythematous and pustular lesion on the left forearm.Large quantity of yeast-like spores were noted on microscopic examination of pus from the lesion. Growth of the isolate on Sabouraud dextrose agar produced a slightly grayish lavender wooly colony. The microscopy following microculture of the isolate revealed erect conidiophores, single-whorl penicilli, and numerous ellipse or subsphaeroidal microconidiae arranged in prismatic or dispersed prismatic shape, which was characteristic of P.lilacinus. Histopathology and PAS staining showed lots of small yeast-like spores in mid dermis. The isolate,which was finally identified as P.lilacinus, showed sensitivity to terbinafine in vitro, but resistance to itraconazole, fluconazole and amphotericin B. Oml and topical terbinafine is effective for the treatment of cutaneous hyalohyphomycosis caused by P. lilacinus.