Dermoscopy, commonly used to analyze skin tumors, has more recently been used to evaluate inflammatory dermatoses. We performed a systematic review of the literature to assess the role of dermoscopy in evaluating psoriasis, and briefly reviewed the findings with an emphasis on the specificity or sensitivity of the dermoscopic findings of psoriasis. We also describe the case of a 63-year-old man with a history of psoriasis and basal cell carcinoma (BCC) who presented with a new scaly pink patch on the back. This case highlights the importance of dermoscopy in differentiating patches and plaques of psoriasis from BCC.