The etiology and histogenesis of granular cell tumor are still debated. Granular cell tumor of the newborn is considered to be a different entity than the adult form of this lesion with different immunohistochemical features. We present a case of a rare gingival granular cell tumor in a newborn and review the literature. Gingival granular cell tumor must be clinically differentiated from teratoma, congenital dermoid cyst, congenital fibrosarcoma, hemangioma, lymphangioma, leiomyoma, rhabdomyoma, heterotopic gastrointestinal cyst, congenital cystic choristoma and congenital lipoma. Surface ulceration or pseudoepitheliomatous hyperplasia may lead to confusion with malignancy.