Paratracheal air cysts are rare lesions and detected incidentally during CT scan or autopsy. Histopathologic diagnoses of paratracheal air cysts include trachocele, tracheal diverticulum and lymphoepithelial cyst. The cysts are lined by ciliated columnar epithelium and have communication with trachea. Previous reports suggested an association with obstructive lung disease because of increased expiratory pressures in these patients. Most of these cysts are asymptomatic but rarely cause productive cough, wheezing, recurrent laryngeal nerve paralysis and difficult intubation. We report a case of paratracheal air cyst causing dyspnea with a review of literature.