Abstract. WR 118 is a highly evolved Wolf-Rayet star of the WC10 subtype surrounded by a permanent dust shell absorbing and re-emitting in the infrared a considerable fraction of the stellar luminosity. We present the first diffraction-limited 2.13 µm speckle interferometric observations of WR 118 with 73 mas resolution. The speckle interferograms were obtained with the 6 m telescope at the Special Astrophysical Observatory. The twodimensional visibility function of the object does not show any significant deviation from circular symmetry. The visibility curve declines towards the diffraction cut-off frequency to ∼0.66 and can be approximated by a linear function. Radiative transfer calculations have been carried out to model the spectral energy distribution, given in the range of 0.5-25 µm, and our 2.13 µm visibility function, assuming spherical symmetry of the dust shell. Both can be fitted with a model containing double-sized grains ("small" and "large") with the radii of a = 0.05 µm and 0.38 µm, and a mass fraction of the large grains greater than 65%. Alternatively, a good match can be obtained with the grain size distribution function n(a) ∼ a −3 , with a ranging between 0.005 µm and 0.6 µm. At the inner boundary of the modelled dust shell (angular diameter Θin = (17±1) mas), the temperature of the smallest grains and the dust shell density are 1750 K ± 100 K and (1 ± 0.2) × 10 −19 g/cm 3 , respectively. The dust formation rate is found to be (1.3 ± 0.5) × 10 −7 M /yr, assuming V wind = 1200 km s −1 .