Subcutaneous Phycomycosis is a rare tropical Mycoses characterized by the development of a chronic, firm swelling of the subcutaneous tissue. Infection caused by Basidiobolus species commonly affects young children. In this article we present a case of Subcutaneous Phycomycosis which presented as a diffuse swelling in the posterior aspect of the knee. Early diagnosis and treatment with Itraconazole caused complete clearance of the lesion. We highlight the merits of accurate diagnosis and early therapeutic intervention in this rare case.