Sebaceous gland carcinoma is a rare fast growing cutaneous cancer. It is derived from the adenxal epithelium of sebaceous glands. Sebaceous carcinomas are generally divided into those occurring in periocular or extraocular locations. Ocular sebaceous carcinomas occur most commonly in upper eye lid, in the elderly with a predilection for females and Asian populations. Due to its clinical resemblance with chalazion or other chronic inflammatory conditions, there is a delay in diagnosis. Due to its rarity, we present a case of sebaceous carcinoma of right upper eyelid in a 65-year-old female.