We report a pigmented follicular cyst (PFC) in a 40-year-old male manifestated clinically as pigmented nevus. Histopathologic findings revealed an infundibular cyst in the mid dermis containing a small amount of keratinous material. The cystic wall consisted of four or five layers of squamous epithelium with a granular layer with abundant keratohyaline granules and the cyst wall contained one hair follicle. It must be differentiated from other pigmented lesions of over-lying skin such as eruptive vellus hair cyst, apocrine hydrocystoma and melanocytic nevus coexistance of an epidermoid cyst. Surgical excision and histopathological examination are necessary for an accurate diagnosis in pigmented lesions.