Forty-five cases of nodular fasciitis from the files of the Surgical Pathology Laboratory of Washington University were reviewed, and the clinicopathological aspects were described and compared with those in previously reported series. Nodular fasciitis is a tumor usually less than three censtimeters in diameter found most often in the subcutaneous fascia of the upper extremity. The histological pattern is distinctive and seems to resemble a reactive process. Treatment should be adequate excisional biopsy. Recurrences in the site of excision are documented and are presumably related to incomplete excision. The ease with which nodular fasciitis can be confused both clinically and histologically with a malignant tumor makes it essential to recognize this distinct entity as benign in order to avoid an unnecessary surgical procedure.