Introduction: Xanthogranulomatous cholecystitis is an uncommon variant of chronic cholecystitis that can present with marked gall bladder thickening or as a mass lesion mimicking a malignant neoplasm. Rarely it may be associated with carcinoma gall bladder, hence a thorough sampling is needed to exclude carcinoma gall bladder. Objective: To analyse the coexistence of xanthogranulomatous cholecystitis and carcinoma gall bladder. Methods: A one-year study was carried out in the department of pathology, from 1st November 2018 to 31st October 2019; in which the carcinoma gall bladder specimens were analysed grossly and microscopically and an association of carcinoma gall bladder with xanthogranulomatous cholecystitis was analysed. Results: A total of 30 cases of carcinoma gall bladder were reported of which 3 cases showed coexisting xanthogranulomatous cholecystitis. Conclusion: The coexistence of xanthogranulomatous cholecystitis and carcinoma of the gallbladder may present a diagnostic dilemma. Due to the overlapping clinical, radiological and gross findings. Although rare the possibility of a coexisting tumour needs to be excluded, for which immunohistochemical markers may be done.