Phaeohyphomycosis is a rare subcutaneous mycosis induced by dematiaceous fungi. Clinically, it is characterized by persistent hyperkeratotic nodules that respond poorly to treatment. A 48-year-old male presented with verrucous tumors and plaques on the trunk and extremities of twelve years duration. Histopathologic studies were consistent with a deep fungal infection, and culture studies identified the causative organism to be Veronea botryosa. The patient underwent surgical excision of some tumors and was given full courses of oral antifungals which did not lead to complete clinical cure. Twelve years after his last follow up, he presented with an increase in number and size of tumors,as well as pallor and weight loss. Histopathology of several skin tumors demonstrated fungal organisms and typical features of phaeohyphomycosis, and significantly, squamous cell carcinoma was present.