Granular cell tumors (GCT) are extremely rare lesions of the urinary bladder with only 12 cases have been reported in the literature. Although usually benign, these lesions are commonly confused for malignant tumors since they may present as solid tumors with ill defined margins and ulcerating surface and hence could be confused with transitional, squamous cell carcinoma or sarcoma in the urinary bladder. Only two cases of malignant granular cell tumor of the urinary bladder were reported. A careful pathologic assessment for establishing the appropriate diagnosis is required and the treatment is either a conservative or aggressive surgical treatment for benign or localized malignant GCT of the urinary bladder, respectively. We report the case of a forty six year old patient who had benign GCT of the urinary bladder.