Traumatic eosinophilic granuloma(TEG) of the oral mucosa is considered to be a reactive benign condition. Histology revealed diffuse mixed infiltration of eosinophil and atypical mononuclear cells. We have described an additional case of TEG simulating oral malignany where immunohistochemistry revealed the presence of CD30+ large atypical cells. The CD30+ lymphoproliferative disorder(LPD) of oral mucosa, although rare, has also been described. In this case, there was scattered distribution of CD30+ cells. After the incisional biopsy, the remainder of oral lesion got disappeared progressively and there is no sign of recurrence. We believe that this case could be a reactive rather than neoplastic process, and it has been suggested that a subset of TEG could be included within the spectrum of CD30+ LPDs. Therefore, oral surgeon and pathologists’ awareness of this condition will reduce the likelihood of misdiagnosis and inappropriate aggressive treatment for this benign, self-limiting lesion.