Malignant otitis externa is a rare and recently described condition. It was diagnosed in a 65 year old male patient presenting with paralysis of left side of face, pain in the left ear, blood stained discharge and granulations in external meatus. He was a diabetic. Tc 99 bone scan was done and showed increased uptake of radio-isotope. Patient was managed on Ceftizoxime and Gentamicin and diabetes was controlled. The patient recovered with relief of pain and disappearance of granulation tissue.