False or pseudoaneurysm formation usually occurs after traumatic, iatrogenic or infective injury to the arterial wall. Despite the high incidence of pseudoaneurysm formation secondary to puncture injury to the common femoral artery false aneurysm formation of the profunda femoris artery (PFA) is a rare complication and has not been previously reported as a complication of orthopaedic surgery. We present a patient who developed a false aneurysm of the PFA secondary to arterial damage caused by a bone fragment dislodged during orthopaedic surgery for fracture of the femur.