Acremonium is a common mold present in the soil and decaying plant material. It rarely becomes pathogenic to humans, particularly affecting the immunocompromised individuals. A 60yr old diabetic male presented with a painless, fluctuant swelling over the medial side of right foot of one year duration. Fine needle aspiration cytology showed plenty of septate fungal hyphae with branching. X-ray foot revealed soft tissue swelling without any bony involvement. To identify the causative agent of subcutaneous abscess. Pus sample was aspirated from the lesion and KOHmount was done which showed septate branching hyphae. It was then inoculated on Sabouraud s Dextrose Agar with gentamicin. Young colonies were yeast-like and turned fluffy grey with age. Lactophenol cotton blue mount from the slide culture was positive for Acremonium kiliense. Acremonium spp., has drawn the attention of clinicians and microbiologists, as an emerging opportunistic pathogen in immunocompromised patients. Consideration should be given to this unusual saprophytic fungal infection as opportunistic infection in the immunocompromised.