Papillary thyroid cancer is the most prevalent histologic type of thyroid carcinoma. There are numerous PTC subtypes that have been identified, with classical PTC being the most prevalent. The follicular variant of PTC (FVPTC) is the second most prevalent subtype of papillary thyroid carcinoma. A case of encapsulated type of follicular variant of papillary thyroid carcinoma was studied which showed a well encapsulated tumour with follicular thyroid cells arranged predominantly in a follicular architecture and a few areas showing solid architecture. There was no papillary architecture and capsular invasion. The tumour cells showed nuclear enlargement, overcrowding and nuclear clearing. Typical Orphan Annie eye nuclei were seen. The encapsulated type of follicular variant of papillary thyroid carcinoma, more so than other FVPTCs, has an indolent tendency and is associated with better prognosis and low risk of tumour invasiveness and metastasis.