Dermoid cysts are developmental anomalies that arise due to defect in the fusion of embryonic lateral mesenchymal approaches during fifth week of embryonic development. Dermoid cysts can be further subdivided into epidermoid , dermoid and teratoid cysts based on the lining epithelium and contents .We present an unusual case of 32 year old female who presented with a swelling in submandibular space, for whom an initial differential diagnosis of plunging ranula was made. The patient underwent an intraoral microscopic excision of tumor under GA following cytology and radiological investigations .Here we would like to stress the importance of multidisciplinary approach to the disease inorder to confirm the diagnosis, considering the manifold differentials and plan surgical approach. Furthermore, the benefits of undergoing an intra oral microscopic excision of the tumor, as it provides better cosmesis , functional outcome and reduced hospital stay.