An inflammatory paradental cyst is a unique lesion that originates from the cervical margin of the lateral aspect of a root as a consequence of inflammation in the dental pocket of a vital tooth. Herein, we report a rare case of a large lesion that was diagnosed incidentally on an incisional biopsy, confirmed histopathologically as an inflammatory paradental cyst, and managed successfully surgically along with the relevant review of the literature associated with it. An 18-year-old female reported to our department with a complaint of pain and swelling in the right-lower back-tooth region for the past 2 months. Clinically, there was mild swelling extraorally on the right side of the face. Radiographically, a large radiolucent lesion was seen extending from the distal surface of the right-lower second molar to the subcondylar region. Cyst enucleation was done along with the surgical removal of the right-lower third molar preserving the inferior alveolar nerve. Inflammatory paradental cyst though benign can be aggressive, so it should be treated at the earliest. It is always advisable to do an incisional biopsy to differentiate it from other potentially malignant lesions like ameloblastoma to prevent a radical treatment.