The development of squamous cell carcinoma in chronic and/or non-healing ulcers associated with necrobiosis lipoidica (NL) is rare, but should be considered in diabetic patients. NL is a non-infectious granulomatous degenerative skin disease. The prevalence of NL in diabetic patients is estimated to 0,3-1,2%. Awareness of malignant transform­ation potential within a plaque of NL is crucial for early diagnosis and easy radical treatment. A case from our outpatient diabetes clinic is presented.