Paraarticular osteochondroma is a rare osteocartilaginous tumor that arises in the soft tissue adjacent to a joint. We report a case of paraarticular osteochondroma of the knee in a 41 years old male patient. The tumor was excised and examined histologically after a series of studies. Paraarticular osteochondroma should be differentiated from other osteocartilaginous tumors around the joint particularly a malignant tumor. Marginal excison is an adequate treatment for the benign tumor with postoperative subsidence of symptoms. Local recurrence is rare.