A 36-year-old woman with liposuction-induced panniculitis was successfully treated with potassium iodide. She presented with painful, multiple, erythematous, subcutaneous, nodules on the thighs and shins which developed at the sites of cannula insertion after receiving lipectomy. Histologic examinations revealed granulomatous infiltration with a few foreign-body giant cells, fibrosis and inflammatory infiltrates mainly composed of lymphocytes and histiocytes in the septa of the subcutis. On polarizing microscopy, performed to rule out a foreign-body reaction, there were no foreign materials and no positivity on PAS staining. Since she developed unacceptable steroid toxicity, potassium iodide (800 mg/day) was given with good effect and tolerance. We conclude that potassium iodide can be used safely and effectively in the treatment of liposuction-induced panniculitis.