Sebaceous carcinoma of the eyelid is a malignant tumor originating from meibomian glands, ciliary glands of Zeis, sebaceous glands of caruncle. Without early management, it follows an aggressive course leading to widespread metastasis in regional lymph nodes and distant organs. Sebaceous carcinoma can resemble other benign tumours leading to its incorrect interpretation. FNAC plays a significant role in the diagnosis of this malignant tumor. In our hospital, we diagnosed a case of sebaceous carcinoma of the lower eyelid based on cytology that was clinically diagnosed as lacrimal gland carcinoma.