A lipoma of the corpus callosum diagnosed by CT at 7 mos and mistaken for hemorrhage in a premature infant is reported from the Medical College of Pennsylvania, Philadelphia, PA. The Apgar scores were 3 at 1 and 5 min, and the infant had hyaline membrane disease that progressed to bronchopulmonary dysplasia. Cranial ultrasound at 10 hrs demonstrated a subependymal hemorrhage with unchanged appearance at 17 days. Seizures associated with bilateral temporal polyspike and sharp-wave EEG activity were controlled with phenobarbital. His head circumference was at the 75th percentile and disproportionately large. A repeat ultrasound at 7 mos showed increased echogenicity in the midline with normal ventricles, interpreted as blood in the third ventricle with calcification. CT showed a large midline area of decreased density extending into the lateral ventricles, consistent with a lipoma of the corpus callosum and calcifications. At 18 mos the head is large and development is delayed at the 12 mo level. [1]