We report a case of atrophy of the perilymphatic, subcutaneous tissue following local steroid injection of an eyelid capillary hemangioma. Unlike such cases that have been previously reported, the atrophy in our case occurred after a single injection of triamcinolone. It spontaneously resolved over a period of 1 year. Although many cases of atrophy following local corticosteroid injections for other lesions elsewhere in the body have been reported, the entity we describe is a rare complication in capillary hemangioma therapy.