Sebaceous gland carcinoma (SGC) of the eyelid is one of the leading peri-ocular eyelid malignancies in Asian-Indians. It usually affects elderly women and has a high rate of local recurrence, regional and distant metastasis. This is partly attributable to a delay in clinical diagnosis since it mimics more benign conditions of the eyelid like chalazia. To the best of our knowledge, this is the first case report of a peri-punctal SGC. Atypical location and the young age of the patient resulted in a relatively conservative excisional biopsy under frozen section control and eyelid reconstruction with a favorable outcome.