The granuloma annulare is a benign granulomatous disease with different clinical manifestations including, localized, generalized, perforating, subcutaneous, patch type, papular and linear types. Papular umbilicated granuloma annulare is considered to be a variant of the papular type and in the Anglo-Saxon literature very few cases have been reported. We describe the case of an adolescent with asymptomatic skin colored papules on the dorsal aspect of the hands since infancy. The biopsy suggested lichen nitidus and after the clinicopathological correlation the diagnosis of papular umbilicated granuloma annulare was made. We highlight the importance of this differential diagnosis and the chronicity of the lesions.