We report the case of a 21-year-old white male with an ectopic sebaceous gland and duct located within the bulb of an anagen hair follicle. This is an incidental finding in one of two biopsies from his chin, performed as part of the workup for a recalcitrant perioral acneiform eruption. The embryogenesis and development of sebaceous glands in human scalp hair follicles are reviewed. To our knowledge, this is the first report of such a developmental anomaly.