Rhinosporidiosis is a rare granulomatous disease affecting the nasal mucosa, nasopharynx, skin and eyes due to Rhinosporidium seeberi. Lacrimal Sac involvement is very rare. Hence, we report an unusal presentation of rhinosporidiosis in lacrimal sac area in an adult male patient who presented with painless boggy swelling in lacrimal sac area with positive history of bath in pond and diagnosis was confirmed with histopathological examination. To prevent the recurrence, the patient was treated with 5% Povidone Iodine intra operatively and use of oral Dapsone (100 mg/day) for three months post-operatively.