Chondrosarcomas of the hand are very rare, constituting less than 0.5% of all chondrosarcomas. Metacarpal involvement and juxtacortical location are still rarer. We report a case of periosteal chondrosarcoma of metacarpal bone in a 38-year-old man, who presented with swelling of the left hand. He underwent extended ray amputation with removal of the entire left third metacarpal bone. Histopathological and radiological features of the tumour are described. Recognition of periosteal chondrosarcoma and its differentiation from other surface bone tumours is very important because the prognosis is excellent after adequate local surgery.