A review of the reported cases of primary liposarcoma of bone, classified as probable or proved, show that the present case is the fourteenth on record. It is possible but not likely in the present instance that the tumor may have originated in the surrounding soft tissue with secondary penetration into the bone. The majority of the reported cases occurred in the lower extremities and the tibia was the most common site. Although the mean survival of the patients is only two years following amputation, four patients including the present one survived and were free of disease two and one-half to six years after diagnosis.