Perineurioma is a soft tissue tumor composed of cells resembling normal perineurium.Lazarus and Trombetta first described it in 1978 on the basis of ultrastructural findings. All perineuriomas express antigens that are identical to normal perineurium of nerve. Soft tissue perineurioma is most commonly seen in extremities and trunk. It has been very rarely described in gingiva, mandible, lips, retrotonsillar mucosa and maxillary vestibule. We present a case of soft tissue type perineurioma arising in mandible, an extremely rare site.