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Hydatid disease in long bones is rarely seen and symptoms are always missed. Diagnosis is made only at a late stage because the parasites grow very slowly in bones. We present a case of hydatid cyst in the right femur with a pathological fracture. The condition was treated by resection of the cyst surgically, internal fixation and filling the cavity with autogenous bone graft taken from the ipsilateral iliac crest followed by treatment with albendazole and cimetidine. Periodic follow-up of the patient for one year revealed no abnormalities on radiology and the patient was improved.