Placental teratoma is extremely rare and a few cases have been described. Because of the extreme paucity of material, there is the uncertainty of origin and the apparent controversy regarding diagnostic criteria. We experienced a case of placental teratoma and reported here with brief review literatures. This case was a primigravida aged 26 years. At 42 weeks of gestation, she delivered 3150gm normal male baby and the tumor was noted between chorionic and amnionic membrane. The tumor was oval round and completely covered with whitish wrinkled skin except the stalk portion. Microscopically, the tumor was surfaced by mature skin with skin appendages. Deeper tissue was composed of a variety of mature structures including adipose tissue, smooth muscle, lymphoid tissue, blood vessels, cartilage and bony tissue, nerve fibers, ganglion cells and glial tissue. The distinction between the tumor and fetus amorphus was made on the absence of umbilical cord and the total organization failure of the tissue, in particular axial skeleton.