A pilar tumor of the scalp is a rare tumor of the squamous epithelium occurring in the scalp area. We have experienced a case of 12 year old female who had a small, but slowly growing tumor mass of 1 cm in diameter in the scalp of the mid-parietal region. Under the clinical impression of a sebaceous cyst, an excisional biopsy of the mass was done. Crossly the cut surface of lesion was an indistinctly defined, gray tan, solid and rubbery mass of 1cm dimension showing friable, soft material. Microscopically the lesion was composed of irregularly shaped lobules of squamous epithelium, in many areas undergoing rather abrupt change into amorphous eosinophilic keratin material. A moderate irregularity in the nuclear morphology was found. However, mitoses were infrequent, and obvious microscopic findings of malignancy were not found. On the basis of these findings, a diagnosis of pilar tumor of the scalp wag made. A brief review of his entity particularly on the current opinions about the histogenesis and the biological behavior of this neoplasm was made.