- Usually congenital, rubbery cyst, often with fine hairs on its surface
- Most commonly periocular
- Dermal or subcutaneous cyst lined by squamous epithelium with a granular layer
- The cyst contains keratin and sometimes hair shafts.
- Hair follicles empty into the cyst wall, which is often also associated with sebaceous and sweat glands.
- Distinguished from epidermal cysts by the adnexal structures associated with the cyst wall
- Distinguished from steatocystoma by the thicker lining without a cuticle and by the greater number and type of adnexal structures associated with the cyst wall