Malignant hand tumors are rarely observed in clinical practice which makes distinguishing them from benign soft tissue masses particularly challenging. A 41-year-old male presented with joint pain and swelling of his left index metacarpophalangeal joint. Radiological studies showed pronounced swelling around the affected joint with no bony abnormality, but incision and drainage of the site yielded negative cultures. Subsequent gross total resection confirmed the diagnosis of myxoid liposarcomas after cytogenetic pathology examination. Recurrence occurred after 1 year, followed by second resection and adjuvant radiotherapy. At 2 years follow-up, the patient was recurrence free. In conclusion, myxoid liposarcoma should be in the differential diagnosis of an older patient with erythema and swelling surrounding a subfascial mass of the hand.