Granular cell tumor (GCT) is a quite rare neoplasm occurring in females in 4^th to 6^th decade of life. It can occur in any part of body but approximately 45% of all cases are known to affect head and neck region. About 70% of GCT’s are seen in intraoral site and 1/3^rd of cases affecting whole body. Most common site is tongue followed by buccal mucosa and palate. These are locally aggressive lesions and frank malignancy has been reported in few. Some lesions show surface ulcerations and pseudoepitheliomatous hyperplasia histologically may imitate malignancy if biopsy is not adequately taken. We report a rare case of swelling of soft tissue involving the right posterior mandible in a middle aged female patient which was histopathologically diagnosed as GCT with a brief on review of literature has been discussed.