Chondromyxoid fibroma is a rare benign primary bone tumor composed of immature myxoid mesenchymal and cartilaginous tissue. Its occurrence in calcaneus is very rare and few cases of calcaneal involvement have been reported in literature. Here we present a case of 28 year old female with swelling at the right calcaneum underwent biopsy and diagnosed as chondromyxoid fibroma, patient underwent limb salvage surgery with curettage and bone cementing, patient was asymptomatic for a period of 8 months and came with recurrence in swelling at calcaneum, biopsy was repeated and reported as chondromyxoid fibroma, patient was counseled and taken up for below knee amputation. Curettage and bone grafting surgery has a poor outcome in the treatment of chondromyxoid fibroma of calcaneum. Obtaining a tumor free margin by curettage and bone grafting is not an ideal treatment for chondromyxoid fibroma of calcaneum as the rate of recurrence is high.