Introduction: Placental teratoma is an extremely rare benign non trophoblastic tumor of the placenta. It consists of various mature tissues derived from germ cell layers. We report a case of placental teratoma which was an unexpected finding during a normal per vagina delivery. Case report: The patient was a 35-year-old lady at full term gestation presented to the hospital with signs of labour. She had spontaneous vaginal delivery and her baby was well. However, following the delivery of the placenta she passed out an oval mass measuring approximately 7.5 cm in largest diameter with skin-like appearance of the outer surface. The cut surface of the mass appeared heterogenous with solid and cystic areas. On histology the cystic areas were lined by skin with an underlying adnexal tissue. The components of the solid areas were bony, cartilagenous and adipose tissues as well as brain, blood vessels and glands. No immature component was noted. The placenta tissue was unremarkable. Discussion and conclusion: The differential diagnosis is fetus acardius amorphus which is due to blighted fetus or failed twin associated with multiple pregnancy. On the contrary, placental teratoma is almost always associated with a normal pregnancy outcome and fetal development. Whether it is a true neoplasm or an extreme form of fetus acardius, the issue of origin remains unsolved. Obstetricians and pathologists should be made aware of this entity. In understanding the molecular insights of their histogenesis, further studies are required