A patient is reported who presented with signs of hypopituitarism. On surgical exploration, she was found to have an intrasellar cyst containing creamy mucoid substance resembling pus. Microscopic examination revealed the lesion to be a Rathke-cleft cyst. These rare lesions are associated with a better prognosis than the typical craniopharyngioma. The distinguishing features between a Rathke-cleft cyst and a craniopharyngioma are discussed.