A 4-year male toddler with positive personal and family history of atopic dermatitis presented with somehow demarcated severely pruritic red scaly plaque with few fine fissures on the top of right foot of 3 weeks duration in addition to generalized mildly xerotic skin. KOH wet mount preparation for dermatophytes was negative. No significant response to two weeks topically applied Tacrolimus ointment but adding topical betamethasone valerate ointment later has resulted in very good improvement. Discoid eczema in children may present de novo or may be part of atopic dermatitis.