Subcutaneous mycoses include a wide spectrum of infections, caused by a heterogeneous group of fungi, of which hyalohyphomycosis is emerging as significant infection in immunocompromised and immunocompetent patients. Acremonium like other hyaline fungi can lead to superficial or deep infection and may even prove fatal. Such infections are rare and treatment outcome may vary depending on the extent of infection and species involved. We report here a case of subcutaneous nodule caused by Acremonium kiliense in a diabetic patient. The infection resolved with fluconazole and terbinafine after eighteen months.