We have experienced 3 cases of papillary carcinoma of the thyroid gland seen as lateral neck cyst, Usually cystic lesions of the neck have been considered as benign lesions from clinical viewpoint. The usual differential diagnosis includes branchial cleft cyst, cystic hygroma, dermoid cyst, cold abscess(tuberculous lymphadenitis) and cavitating squamous cell carcinoma. A lateral neck cyst as the sole presenting complaint of the papillary thyroid carcinoma is very rare. Preoperative diagnosis of lateral neck cyst is often diagnostic dilemma. Fine-needle aspiration cytology can be helpful in detecting the cancer cells and in demonstrating the nature of the fluid component of the lateral neck cyst. Presence of brown murky fluid from the aspirated fluid is highly suggestive of thyroid carcinoma. The thyroid scans and B-mode ultrasonography mayor may not be helpful to detect the primary focus of the thyroid gland. We suggest that a patient with a lateral neck cyst in adult age group should be considered to be a possibility of underlying thyroid carcinoma presanting as lateral neck cyst.