Palisaded encapsulated neuroma is a rare, benign cutaneous tumor. It most commonly presents as a solitary, flesh-colored, dome-shaped nodule affecting the face. However, albeit rarely, palisaded encapsulated neuroma may also appear on the trunk, genitals, or extremities. We describe the clinical and pathologic findings of a male patient who presented with a palisaded encapsulated neuroma on his left flank. In addition, we review the characteristics of patients with truncal palisaded encapsulated neuromas and summarize the clinical and histologic differential diagnosis of this tumor.