Facial palsy in the presence of ipsilateral parotid tumour is considered to be pathognomonic of malignancy. However, benign neoplasms and inflammatory lesions of the parotid gland have been reported to present with facial palsy. A case of lipoma of the parotid gland associated with partial facial paralysis is reported. Lipomas are very rarely seen in this site. To our knowledge, a lipoma of the parotid producing facial paralysis has not been described previously. This report highlights the difficulties in pre-operative diagnosis and management of such a lesion.