Hydatid disease is caused by Echinococcus granulosus and most commonly seen in liver and lung. Incidence of pancreatic hydatid cyst is very rare. A 45-year-old female housewife presented with lump in the right side of her hypochondrium that persisted for 1 year. She did not have a history of abdominal pain, jaundice or fever, loss of appetite, or weight loss. Her abdominal computed tomography revealed a 9.5 cm × 8 cm sized thick-walled cystic lesion with a wall thickness of 7 mm. The lesion was seen abutting liver, pancreatic head, adjacent bowel loops, superior mesenteric artery, superior mesenteric vein, and mass effect in the form of adjacent bowel loops. Considering the cystic lesion of pancreas, the patient was planned for exploratory laparotomy. Intraoperative findings were evident of cystic mass involving head of pancreas with adhesions and superior mesenteric vein. The patient was considered for pancreaticoduodenectomy with clinical suspicion of neoplastic lesion. Histopathology of specimen suggested hydatid cyst. The patient was given albendazole 15 mg/kg postoperatively. The patient was monitored in our outpatient department for 6 months. Hydatid cyst of the pancreas should be considered in the differential diagnosis of cystic lesion of the pancreas and thorough pre-operative assessment can offer appropriate choice of surgery for complete cure of the disease and avoid the complex post-operative course and prolonged hospitalization.