Annular atrophic lichen planus(AALP) is the most unusual variant of lichen planus that results from elastolytic activity of inflammatory cells. We report a case of AALP in 22-year-old man who had two annular pruritic plaques on the axilla. He had a two year history of skin lesions. Each lesion had elevated erythematous annular border with hyperpigmented atrophic macular center. Histopathologically, it showed typical features of lichen planus in the border of the lesion while a pattern of resolved lichen planus in its center. Elastic fibers was not found in the papillary dermis either at the border or at the center of the lesion.