Axillary artery pseudoaneurysms are relatively rare, with few reported cases found in the literature. There have been high rates of rupture and compression-related complications in trauma-related pseudoaneurysms of the upper limb. Prompt diagnosis with non-invasive imaging modalities such as ultrasound, magnetic resonance imaging, and computed tomography. Angiography is required for immediate intervention and prevention of complications. Here, we present a case of an extremely rare right-sided acute traumatic axillary artery pseudoaneurysm with compression, resulting in quadrangular space syndrome in a 31-year-old male patient. We performed a critical literature review of the same and identified only a few previously reported cases.