Schwannoma is a benign, encapsulated peripheral nerve sheath tumor arising from Schwann cells. It commonly occurs in the head and neck region and extremities; however, involvement of the groin is exceedingly rare and often poses diagnostic challenges due to its nonspecific presentation. We report a case of a 50-year-old female presenting with a painless, gradually enlarging swelling over the medial aspect of the right groin for one year. Clinical examination revealed a 2 × 2 cm soft, mobile, non-tender, multilobulated nodule with normal overlying skin. Differential diagnoses included dermatofibroma, lipoma, dermoid cyst, nodular fasciitis, palisaded encapsulated neuroma, and squamous cell carcinoma. Excisional biopsy was performed. Histopathological examination demonstrated a well-encapsulated tumor with alternating hypercellular Antoni A and hypocellular Antoni B areas, along with Verocay bodies. Immunohistochemistry showed strong S-100 positivity, confirming the diagnosis of schwannoma. The postoperative course was uneventful with no recurrence. This case highlights the importance of considering schwannoma in the differential diagnosis of groin swellings and emphasizes the role of histopathology and immunohistochemistry in definitive diagnosis.