An aneurysmal bone cyst is a locally destructive lesion considered to be a pseudotumor arising from the bone. Although this benign-like lesion is generally considered rare, several approaches for treatment have been presented. We report a case involving a 15-year-old female diagnosed with aneurysmal bone cyst of the lateral malleolus. Applying the Masquelet technique enabled the treatment of the lesion without causing instability to the ankle joint and the prevention of recurrence through the application of polymethylmethacrylate. To our knowledge this is the first documented case in our region and possibly in the Philippines.