Etanercept is a biologic agent prescribed by dermatologists for the treatment of moderate to severe plaque psoriasis and psoriatic arthritis. Although the safety profile of etanercept is well established, it is always important to be vigilant in noting the development of novel side effects associated with biologic agents. We report a case of biopsy-proven nodular fasciitis (NF) that developed in an otherwise healthy man with plaque psoriasis who was undergoing treatment with etanercept.