Purpose of Review <p>Subcutaneous phaeohyphomycosis (PHM) is a type of mycosis that occurs by implantation and is caused by melanized fungi. It usually crops up following traumatic inoculation of dematiaceous fungi from soil or vegetation; thus, certain occupational groups such as farmers and gardeners are affected more often. This review highlights the underestimation of the condition, usually impaired by misdiagnosis, emphasizing the need for clinician awareness, keen diagnostic judgement, and efficient laboratory support in order to make an accurate timely diagnosis.</p> Recent Findings <p>Although historically, PHM has been predominantly reported in immunocompetent hosts, there have been increasing reports of PHM in immunocompromised hosts as well, highlighting its emerging significance in these patients. The clinical manifestation of subcutaneous PHM is highly varied, including chronic nodules, cysts, verrucous plaques, or abscesses. Thus, confirmation of PHM cases often requires an interdepartmental approach, including histopathology, fungal culture, and molecular sequencing. Additionally, diagnostic accuracy may be enhanced by newer advanced methods such as matrix-assisted laser desorption/ionization–time-of-flight mass spectrometry (MALDI-TOF MS) and next-generation sequencing.</p> Summary <p>Subcutaneous phaeohyphomycosis remains an underrecognized clinical entity due to its diverse clinical presentations and frequent misdiagnosis. Accurate diagnosis relies on a high index of clinical suspicion supported by appropriate laboratory investigations, including conventional and advanced diagnostic modalities. Management typically involves complete surgical excision, often supplemented by systemic antifungal therapy such as itraconazole, voriconazole, or posaconazole, underscoring the importance of early recognition and timely intervention for optimal outcomes.</p>