An adult African grey parrot (Psittacus erithacus) was examined because of bilateral periorbital swelling of 1-year duration. Ultrasonographic imaging revealed bilateral periorbital and retrobulbar soft tissue swelling, most consistent with fat echogenicity. The bird was euthanatized, and computed tomography (CT) and magnetic resonance imaging (MRI) of the head were performed postmortem to delineate the extent of the lesions. At necropsy, the periorbital diverticuli of the infraorbital sinus were expanded bilaterally with soft, yellow tissue that elevated the overlying skin and extended into the retrobulbar spaces and the mandible. Histopathologic examination revealed that this mass was a well-differentiated liposarcoma. Liposarcomas are rare neoplasms in avian species, and this is the first reported liposarcoma in an African grey parrot.