A 28-year-old male patient presented with a recurrent swelling in the left lateral chest wall just below the left axilla since seven years. Patient was operated for the same swelling eight years back and its biopsy report showed hydatid cyst. Patient had not taken any antihelminthic post operatively. Based on this, diagnosis of recurrent subcutaneous hydatid cyst was made and total cystectomy was done. Post operatively patient was started on albendazole. On follow up of one year there is no recurrence. Hydatid cyst is caused by the larval stage of Echinococcus. Four species of the Echinococcus tapeworm can produce infection in humans. E. granulosus and E. multilocularis are the most common, causing cystic and alveolar echinococcosis respectively, while E. vogeli and E. oligarthrus have rarely been associated with human infection. Hydatid cyst of the subcutaneous is extremely rare. This case report highlights the rare location of the hydatid cyst as well its recurrence in rare location.