Lipomas are the most common form of benign mesenchymal tumors and are composed of mature adipocytes. They can occur anywhere in the body where fat is found and thus, called as the 'universal tumor' or the 'ubiquitous tumor'. Intraosseous lipomas (IOL) are among the rarest (0.1%) of primary bone tumors and are very rarely seen in head and neck bones. They have been subdivided based on the site of origin within bone, into intramedullary and intracortical. Of the two, few cases of intramedullary lipoma have been reported intraorally and none of the latter. Intraosseous lipomas are usually asymptomatic and are detected incidentally on radiographs taken for other complaints. Here, we report a case of intraosseous lipoma in the mandible presenting as a large swelling.