A patient with hypercalcemia, suppressed serum PTH levels, and elevated serum levels of calcitriol was found to have a granulomatous lipoid pneumonia due to chronic aspiration of a "vaporizing ointment." After the surgical removal of the largest granuloma, the serum calcium and calcitriol levels rapidly returned to normal. This is a new instance of granuloma-induced hypercalcemia, probably mediated by the activation of vitamin D by cells of the granulomatous reaction.