Gastrointestinal lipomas are rare and are most common in the right colon. They are in opposite distribution of predilection site in comparison to adenocarcinomas and adenomatous polyps. The peak incidence for lipoma of the large bowel is in the sixth decade when there is a high incidence of colorectal carcinoma. Because of their location and the age of the patients at presentation, large bowel lipomas are usually treated on the basis of a presumptive malignant diagnosis. A 79-year-old male is presented with a 1-year history of rectal bleeding. Colonoscopy demonstrated a pedunculated mass nearly obstructing the rectum. Anterior resection was performed. The mass consisted of submucosal lobulated mature fatty tissue with ulcerated mucosa. The authors describe a case of a submucosal lipoma of the rectum with review of literatures.