Sebaceous adenoma (SA) is a rare, slow-growing benign tumor arising from sebaceous glands, accounting for less than 0.5% of all cutaneous neoplasms and approximately 1–2% of eyelid tumors. The eyelid is an uncommon site for this lesion. Histologically, SA shows well-circumscribed lobules composed of mature sebocytes with vacuolated cytoplasm and a peripheral rim of basaloid cells, without nuclear atypia or mitotic activity. We report a case of an 81-year-old man with a unilateral papillomatous lesion in the left lower eyelid, diagnosed as sebaceous adenoma on histopathology. Immunohistochemistry revealed EMA positivity and a low Ki-67 proliferative index, confirming its benign nature. The rarity of its pseudopapillomatous presentation and its need for differentiation from sebaceous carcinoma highlight the diagnostic importance of this case.