Though Phaeoacremonium parasiticum is an unusual cause of human disease, subcutaneous infection, eumycetoma, osteomyelitis, arthritis and even disseminated diseases, such as fungemia and endocarditis have been reported. Here, we report a case of subcutaneous abscess on the forearm due to P. parasiticum in a 26-year-old woman. There were no obvious predisposing factors. The patient was treated with surgical debridement followed by intravenous amphotericin B and itraconazole to which she responded well. We report this case, being rare and the first from India.