Subcutaneous lipogranulomas have been known to occur after injection of lipids for cosmetic or therapeutic reasons. Fibrosis may occur around the granulomas, giving them a labulated appearance that can clinically mimic a malignancy. Of the few reports of lipogranulomas after the use of topical ointment, none have occurred in the eyelid. We report a case of subconjunctival lipogranulomas after the use of topical ointment whose clinical appearance was suggestive of sebaceous gland carcinoma.