Nevi are areas of melanocytic hyperplasia or neoplasia. These collections can be found in the epidermis, partially in the dermis, or completely within the dermis. They commonly develop in childhood and young adulthood and sometimes spontaneously regress. Exposure to Ultraviolet (UV) radiation is associated with increased density of these lesions. In contrast, neurofibromas are benign proliferations made up of all nerve elements and arise as fleshy and non tender, sessile, or pedunculated masses on the skin. They can arise sporadically or in association with type 1 Neurofibromatosis (NF), and in these cases, are associated with café-au-lait spots and Lisch nodules. In the present report, authors present a case diagnosed clinically as a giant naevus on the dorsum of the right hand in an adult patient (26-year-old female) with no other associated secondary swellings elsewhere in the body. However, further radiological investigations revealed a case of vascular malformation. Postoperatively, histopathological examination showed features of diffuse neurofibroma. The present case report enables the surgeon to consider various rare differential diagnosis for swelling in the extremities, even when it is not reflected in the clinical or radiological findings. Thus, a detailed history, physical examination, and various diagnostic tests, keeping in mind all possible differential diagnosis, should be performed.