Giant cell tumor accounts for approximately 6% of all bone tumors and above 20% cases of benign bone tumors. It typically involves the long bones in young adults with slight female preponderance. Its location at the distal phalanx of a toe is rather unusual. We report a rare case of giant cell tumor arising in the distal phalanx of the second toe in a 42-year-old female who presented with complains of pain and swelling of the second right toe. The tumor showed highly aggressive behavior with ulceration of skin necrosis and the radiography showed an expansile lesion in the distal phalanx. The patient underwent radical excision five months after diagnosis.