Xanthogranulomatous cholecystitis (XGC) is a rare inflammatory disease of the gallbladder, intramural accumulation of lipid-laden macrophages and acute and chronic inflammatory cells is the hallmark of the disease. The xanthogranulomatous inflammation of the gallbladder can spill over to the neighbouring structures like liver, bowel and stomach resulting in dense adhesions, perforation, abscess formation, fistulous communication with adjacent bowel. Characteristic pathological, radiological and clinical features are shared with gallbladder carcinoma. The differentiation between them may not be easy and definitive diagnosis is performed by histopathological analysis. The treatment of XGC is surgical and the evolution is favorable in the majority of cases.