Superficial epithelioma with sebaceous differentiation is a rare benign cutaneous tumor, with a few cases documented in the literature. It lacks standardized nomenclature and is therefore probably underdiagnosed. We report the case of a 68-year-old man who presented with a pigmented nodule on the forehead. The lesion was fully excised. Histopathologic examination revealed a superficial plate-like epithelial tumor with pushing borders, attached to the overlying epidermis. It was characterized by multilobular proliferation of basaloid to squamous cells with mature sebaceous cells arranged as small clusters or as single cells. Cytologic atypia was absent, and mitotic figures were inconspicuous. Immunohistochemically, tumor cells were positive for cytokeratin 5/6 and negative for Ber-EP4. At 6 months of follow-up, no recurrence was documented. The diagnosis of superficial epithelium with sebaceous differentiation is challenging for both pathologists and dermatologists because of its broad clinical and histologic spectrum, which allows for a wide differential diagnosis.