Pseudoaneurysm of the cystic artery is a rare cause of hemobilia, with only twelve cases having been reported in the English literature. We report a case of pseudoaneurysm of cystic artery in a 70-year-old Taiwanese man. He suffered from epigastric pain, GI bleeding, jaundice and abnormal liver function. Duodenoscopy demostrated bleeding from papilla of Vater. We diagnosed hemobilia due to the pseudoaneurysm of the cystic artery after selective hepatic angiography. Furthermore, we successfully controlled bleeding by embolization of the cystic artery with microcoil. He received cholecystectomy, and pathologically, the gall bladder showed acute calculous cholecystitis with pseudoaneurysm formation. This case emphasizes the importance of including hemobilia in the differential diagnosis of upper GI bleeding. Selective hepatic angiography is the diagnostic modality of choice. Furthermore, transcatheter embolization should be attempted because it permits the delay of surgical intervention in unstable and critical patients with shock or sepsis.