Xanthogranulomatous gastritis is an extremely rare condition and only few cases have been reported in literature. It is an inflammatory tumor like lesion usually misdiagnosed preoperatively as an advanced gastric cancer. We report one such rare case in a 68 year old female who came with complaint of epigastric pain and vomiting for 15 days. Endoscopy revealed solitary elevated nodule in the gastric lesser curvature. Clinical diagnosis was suspicious of gastric carcinoma. Histopathologically foamy histiocytes with dense chronic inflammatory infiltrate were seen in gastric wall suggestive of xanthogranulomatous gastritis