Congenital dacryocystocele is an uncommon lesion of the nasolacrimal drainage system of newborns. The lesion often develops secondary infection due to the obstruction of both distal and proximal nasolacrimal ducts. Early recognition by experienced pediatrician might initiate effective therapy to prevent the progression to possible secondary infection. However, there is no standard criteria for optimal treatment. Hence, we review the literature and report two newborns with congenital dacryocystocele in one of which progressed to secondary infection, dacryocystitis.