Lipomas and lipoblastomas are benign tumors of mesenchymal origin in contrast to liposarcoma that is a malignant tumor. Atypical lipomatous lesion arising from embryonal fat cells is termed as lipoblastoma. In the present case report 9-month-old male presented to us with painless, rapidly progressing mass over back, power was normal in all four limbs, fine needle aspiration cytology was suggestive of cellular tissue, magnetic resonance imaging suggestive of well-defined enhancing mass in paravertebral location, extending from D3 to D10 vertebrae with intraspinal extension, communicating through neural foramina at level of D7. Intraoperatively, it was dumbbell-shaped, looked like neurofiboma based on the gross findings and it was adherent to dorsal nerve root also. Single level laminectomy with complete surgical excision of lesion done with sacrifice of dorsal nerve root. Histopathology was suggestive of lipoblastoma. Postoperative recovery was uneventful.