Adenomatoid Odontogenic Tumor is a rare tumor constituting 3-7% of all odontogenic tumors. It is a benign neoplasm which arises from the odontogenic epithelium. We present a case of 22 year female patient with a well defined, unilocular radiolucent lesion containing an impacted tooth seen radiographically. On microscopic examination, sections comprise of cyst wall composed of fibrous connective tissue with areas of haemorrhage. Whorls and lobules of spindle shaped cells were seen on luminal aspect with interspersed duct like structures. Based on the above histopathological features final diagnosis of Adenomatoid Odontogenic Tumor was made. The treatment of choice is conservative surgical removal through simple curettage or enucleation. Recurrence is very rarely seen.