Follicular basal cell hyperplasia (FBCH) overlying dermatofibroma repr
esents aborted or impeded pilar differentiation. Historically, this hy
perplasia has been misinterpreted as basal cell carcinoma. In a large
series of dermatofibroma (258 cases), those that contained primitive o
r malformed follicular structures over the lesion (59 cases) were comp
ared with those without such elements (199 cases). Statistical analysi
s of various clinicopathologic features showed that FBCH was significa
ntly associated with younger age, trunk location, hypercellular dermat
ofibroma, loss of a Grenz zone, clear cell hyperplasia, and seborrheic
keratosis-like change. There was an inverse correlation between epide
rmal atrophy, lichen simplex chronicus-like change, and lower extremit
y location with FBCH. Histologic features favoring a diagnosis of FBCH
over basal cell carcinoma are the focal nature and superficial locati
on of the lesion, lack of cytologic atypia and mitoses, recognizable c
omponents of hair follicle differentiation, focal condensation of mese
nchymal cells around basal cell proliferation, and the association of
epidermal hyperplasia. Our findings suggest that FBCH, clear cell hype
rplasia, and seborrheic keratosis-like change all represent an express
ion of follicular differentiation overlying dermatofibroma.