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Concomitant pseudoaneurysm and arteriovenous (AV) fistula formation of brachial artery after a penetrating injury has been rarely reported. False aneurysms of peripheral arteries are very rare. It is usually of infectious, posttraumatic or of iatrogenic etiology. In most cases, these are the result of penetrating injuries such as gunshot or stab wounds and iatrogenic arterial injuries. Brachial artery is not a common site for peripheral artery aneurysms. Its association with fistula formation with adjacent vein makes this a rare case. This case was diagnosed on colour duplex ultrasound and confirmed on subtraction angiography.