Cholesterol granuloma(CG) occurs frequently in association with chronic middle ear diseases, particularly diseases in the mastoid antrum and air cells of the temporal bone, and much less frequently in paranasal sinuses. It occurs frequently secondary to massive hemorrhage of oral and paraoral cysts. However, It has never been reported to occur solely without any association with preexisting lesion in the mandible. We experienced development of unusual cholesterol granuloma in the mandible. Seventy year old female presented diffuse hard swelling on the left mandibular area with lymphadenopathy of the left cervical lymph node. Radiographic examination showed a well circumscribed multilocular radiolucency resembling soap bubble appearance with tooth displacement and root resorption, leading to the radiogrphic impression of dentigerous cyst or odontogenic cyst or ameloblastoma. CT showed bucco-lingually undulating expansile lesion with corticated margin from the left posterior mandibular body to the anterior ramus, including #46, #47 and #48, and the mass showed slightly lower attenuation than muscle. leading to the impression of ameloblastoma. The mass after surgical excision composed of 2 sac like structures, measuring 4.0cm, and 2.7cm in diameter respectively. One sac was tightly attached to the #46, resembling dentigerous cyst. Microscopic examination showed a large number of cholesterol clefts in association with hemorrhage, hemosiderin pigments and foreign body giant cells. There was no evidence of cyst or other lesions