• A 26-year old woman underwent radial keratotomy combined with concentric trephination (6.5 and 8 mm) six months prior to development of multiple epithelial inclusion cysts. A biopsy specimen from one enlarging cyst showed an absence of scarring in addition to the retention of epithelium within a radial incision wound. Adjacent keratocytes were abnormal and seemed to be undergoing degenerative changes. To our knowledge, this is the first report of a failure in corneal wound healing associated with microcystic degeneration of the epithelium following radial keratotomy.