Alveolar hydatid disease is a serious and often fatal condition caused by infection with the metacestode form of echinococcus multilocularis. Liver involvement is seen in 90% of the cases. The parasite develops within the liver as a rapid invasive pseudomalignant growth and may make distant metastasis. We present the case of a 37 year old woman admitted to our gastroenterology department with obstructive jaundice and then diagnosed as alveolar hydatid cyst with lung metastasis. This case is presented due to its rare prevalence.