Pneumatosis remains a rare condition presenting with multiple gas filled cysts at various parts of the GIT. It islmost always a secondary finding in a already active disease. It is very usual for it to be found occasionally at a routine examination. In the following study we present a case of intestinal pneumatosis in a 49-year-old female patient who underwent routine surgery for gastric dilatation as a complication of a chronic peptic ulcer. After exploration of the abdominal cavity, a polycystic tumor formation was found at the terminal ileum. It was further resected and sent for pathohystology analysis according to which it was stated that it was a cystoid intestinal pneumatosis on a terminal ileum. The presented case went in favour of the mechanical theory which states that pyloric gastric outlet obstruction is the most common cause of intestinal pneumatosis.