Schwannoma is a benign nerve sheath neoplasm of schwann cell origin. Mediastinum is the second most common site of schwannoma with majority originating in the posterior medistinum. Mediastinal schwannoma is slow growing and mostly asymptomatic in presentation. We present a case of schwannoma arising in the anterior mediastinum, an unusual location, complicated by massive haemorrhagic pericardial effusion. We recommend an aggressive approach in such cases with pericardiectomy to prevent reaccumulation of the pericardial fluid.