Localized morphea is a disorder of unknown cause in which there is localized sclerosis of the skin. Disabling pansclerotic morphea of childhood is a rare severe mutilating form of morphea involving the dermis, fat, fascia, muscle and even bone, usually starting before the age of 14 years. Here, an eight-year-old boy with progressive sclerosis of palmar surface of wrist and hand and digits without involvement of finger tips is presented whose major signs was flexion contracture of wrist and claw hand deformity of third and fourth fingers. Due to progressive nature of the disease he was treated with prednisolone and hydroxychloroquine and the progression of the disease was controlled.