Palisaded encapsulated neuroma (PEN) is a rare, benign, cutaneous nerve sheath tumor, which usually appears as a solitary asymptomatic skin-colored papule, which usually affects the face of middle-aged adults. Here, we report a case of PEN with unusual clinical features in a 23-year-old female, developed on the back, accompanied with pain sensation. Histopathologically, it appeared as a well-circumscribed, encapsulated round nodule, consisted of uniform, broad, and interlacing fascicles of the spindle cells in the dermis. On immunohistochemical staining, the tumor cells of nodule were positive for S-100 protein and neural filaments, while the capsule of the nodule was focally positive for the epithelial membrane antigen.