We retrospectively studied 14 patients confirmed histopathologically to have eyelid sebaceous carcinoma during 1986–1994. We removed all tumors totally with frozen section controls and performed reconstruction either by primary apposition or transposition flaps. We observed recurrence in 5 patients (35.7%) in whom a surgical margin of either 1 or 3 mm was taken but none in those with a 5-mm surgical margin. At least 5 mm of normal tissue around the tumor should be removed considering the metastatic potential of these tumors.