In the past, discoid lupus erythematosus was sometimes treated with irritants or radiation therapy and it was not unusual for squamous cell carcinoma to subsequently develop in these lesion. After the changes in treatment to steroids and the antimalarials, the association with squamous cell carcinoma has been extremely rare. A case of squamous cell carcinoma arising in D.L.E. lesion occurring in a 39 year old woman is presented with a brief review of the literature was made.