Complications of laparoscopic adjustable gastric banding occur in 10-20% of patients. However, hepatobiliary complications of this procedure are very rare. We report a unique case of gastric band misplacement around the hepato-duodenal ligament. The patient developed obstructive jaundice several months after the gastric band placement and suffered recurrent episodes of obstructive jaundice and cholangitis that were initially erroneously attributed to fatty infiltration of the liver. Further diagnostic work-up demonstrated the presence of the gastric band in the hepatic hilum. Exploratory laparotomy confirmed the diagnosis, and the band was removed. Jaundice reversed and hepatic function was restored following removal of the occluding band.