Aneurysmal bone cyst (ABC) is a well-characterized benign cystic lesion of the bone with common localization to the medulla of the long bones. Rarely, ABCs may arise within the subperiosteal region, which can be diagnostically challenging for both the radiologist and pathologist due to their aggressive radiologic appearance thus mimicking other malignant neoplasms. Herein, we present a rare case of subperiosteal ABC with prominent soft tissue involvement and florid reactive periosteal ossification and provide a short literature review on subperiosteal ABCs.