Sebaceous lymphadenoma is a rare primary tumour of the salivary gland, benign in nature arising from differentiated Sebaceous glands and cells in the salivary gland. Most of the tumours are seen in the parotid gland and very rarely in the submandibular gland. Herein a case of sebaceous lymphadenoma is reported in a 45 years old female with a swelling in the submandibular region. Histopathological study after surgical excision showed islands of sebaceous epithelial cells with dense collections of lymphoid cells in stroma and a diagnosis of sebaceous lymphadenoma of submandibular gland was made.