Primary hydatid cyst of the pancreas represents a rare clinical entity. The clinical presentation depends on the location of a hydatid cyst in the pancreas. A hydatid cyst located in the head of the pancreas usually manifests as obstructive jaundice due to the extrinsic compression of the common bile duct. A case of a hydatid cyst of the head of the pancreas in a 4-year-old female is reported. She presented with abdominal pain and jaundice. Contrast-enhanced computed tomography scan of the abdomen revealed a cystic mass at the lower end of the common bile duct, which mimicked a choledochal cyst. The diagnosis of hydatid cyst was made intraoperatively, with postoperative findings revealing a hydatid cyst at the head of the pancreas that was compressing the lower end of the common bile duct. After cystectomy, no recurrence was seen in follow-up.