Subcutaneous granuloma annulare (SGA) is a benign inflammatory disorder that may be alarming in its presentation because of its rapid growth and extensive differential diagnosis. The purpose of our study was to improve the appropriate evaluation and management of pediatric patients with subcutaneous scalp nodules. This article presents the clinical presentation, histopathologic data, evaluation, and management of a patient with subcutaneous scalp nodules diagnosed as SGA. Additionally, the clinical data of all other cases of SGA diagnosed at our institution over a 9-year period were reviewed. The majority (72%) of SGA patients encountered at our facility were children. Most of the SGA lesions were located on the extremities; however, all of the lesions located on the scalp were in children. This article reviews the differential diagnosis and workup of scalp nodules. In evaluating the patient with subcutaneous scalp nodules, we conclude that SGA should be added to the differential diagnosis.