Keratocystic odontogenic tumor is considered to be a benign cystic neoplasia of jaw bone with a higher rate of recurrence. It is noted to be third most common odontogenic cyst after radicular and dentigerous cyst. Most common location is posterior mandible and ascending ramus. A case with odontogenic keratocyst of the right posterior mandible is presented with proper clinical and radiographic examinations along with histopathological investigation. Cystic lesion was surgically resected with iliac crest bone graft replacement and reconstruction plate placement. Follow-up of 1 year is completed with repeated radiographic examinations in 4 months interval with no evidence of recurrence.