The term panniculitis denotes inflammation of subcutaneous fat. Histologically panniculus is made up of fat cells, bounded by septa which harbour blood vessels. Panniculitis is classified as septal or lobular, with or without vasculitis. Surgical biopsy of a fresh lesion is essential for correct histopathological diagnosis. Panniculitis is caused by a variety of processes and conditions such as infection, immune-mediated disorders, malignancy, drugs, enzyme deficiency, trauma, etc. Present article discusses pathogenesis and classification of panniculitides and provides a short description of the common and/or important entities associated with panniculitis.