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Punctal keratinizing cyst is an extremely rare ectasia arising from the most proximal part of the vertical canaliculus just beneath the punctum. To the best of the authors’ knowledge, so far only 1 such case has been described in the literature. Typical clinical features and a meticulous histopathological examination aid in the diagnosis. Although rare, it should be kept in the differential diagnosis of punctal and peripunctal lesions. The authors report the second case with a few clinical and pathologic differences. Addition of more such cases to literature will help unravel the etiopathogenesis of this intriguing punctal disorder.