Papillary neoplasms of the breast are rare and often pose diagnostic challenges to pathologists in routine practice. Encapsulated papillary carcinoma (EPC) of the breast is a rare type of papillary neoplasm. This tumor presents in postmenopausal women. Sonomammogram will aid in locating and identifying it as a cystic lesion. Fine needle aspiration cytology will help in diagnosing the papillary nature of the lesion. Surgical excision is the treatment of choice. Histopathology is necessary for accurate diagnosis. In rare circumstances, noninvasive EPC can have axillary nodal metastasis. We report the case of a 52-year-old woman who came with complaints of a lump in the left breast. This lump was radiologically suspected to be a phyllodes tumor. Fine needle aspiration cytology helped in identifying the lesion as papillary neoplasm. Histopathological examination revealed noninvasive encapsulated papillary carcinoma with axillary lymph node micrometastasis.