Penile hemangiomas are very uncommon mesenchymal tumors with less than 20 cases described in the literature. We report on a case of sclerosing hemangioma of the corpus cavernosum diagnosed by MRI and needle biopsy. MRI could delineate the exact anatomical relationship of the hemangioma, corpus cavernosum, tunica albuginea and Buck's fascia. However, the tumor revealed an unspecific inhomogeneous high and low signal intensity shown to be typical for carcinoma, inflammation, fibrosis or plaques. MRI cannot distinguish between benign and malignant penile tumors. A needle biopsy was performed with the Biopty gun and a good tissue sample was obtained for pathological analysis. Our case report demonstrates that this technique is rapid, safe, painless and effective in obtaining adequate tissue samples for microscopic studies. Since sclerosing hemangioma is a benign tumor and the patient was asymptomatic, no further treatment had to be performed.