Intracapsular fracture of femoral neck is treated by anatomical reduction (preferably closed) and cannulated cancellous lag screw fixation.Malunion of these fractures have been described in the coronal plane (coxa valga or coxa vara).We reported a case of young adult patient with displaced intracapsular fracture of femoral neck that had malunited in sagittal plane with callus formation with excellent functional outcome.The radiographs revealed intracapsular fracture of femoral neck right side (Garden type 4 and Pauwel type 3).The patient was operated and closed reduction and intal fixation with three cannulated cancellous screws was performed.The postoperative radiograph revealed a loss of reduction in the lateral view.Due to this technical error,the patient was counselled for revision fixation for which he refused.At 9 months we observed union of the fracture in the displaced position by callus formation.Harris hip score at 2 years was 96 that indicate excellent functional outcome and the radiographs did not reveal any evidence of avascular necrosis of femoral head.We advised revision surgery to our patient as he had increased chances of implant failure and nonunion.However he refused the revision surgery and was continued with the suboptimal reduction.However,the fracture united and that too with callus formation,which is not a described phenomenon in neck of femur fracture.