The complications of the treatment of penile lesion are wide ranging, urethrocutaneous fistula being one of the less common. This complication affects the ventral aspect of the penis. We present a rare case of urethrocutaneous fistula after vaporization of penile lesion by CO2 Laser. One fistula was at ventral aspect of the penis. A 43-year-old male presented with passage of urine from one opening. He had undergone a vaporization by CO2 laser, 2 times. Urethrocutaneous fistula repairs was performed with biopsy of the edge of fistula site. Squamous cell carcinoma was confirmed. He subsequently underwent a partial penectomy. It is very important that biopsy was performed before vaporization of even small size skin lesion. This case is reported along with a brief review of the literature.