Mature bone formation in well-differentiated liposarcoma and dedifferentiated liposarcoma has been described as a reactive or "metaplastic" change in most reports, and its neoplastic nature has not been widely appreciated. We herein describe 9 cases of well-differentiated/dedifferentiated liposarcoma with distinct areas of fibroosseous tissue histologically indistinguishable from low-grade osteosarcomas, that is, parosteal osteosarcoma or low-grade central osteosarcoma. The tumors affected middle-aged to elderly patients, and occurred in the retroperitoneum and deep soft tissue of the extremities without connection to the skeletal system. Grossly, all the tumors showed biphasic appearance with lipogenic and osteogenic area, the latter representing 5% to 50% of the total tumor volume. Histologically, the lipogenic component exhibited typical histology of well-differentiated liposarcoma, whereas the osteogenic area consisted of fibroosseous tissue with numerous mature neoplastic bone trabeculae largely lacking osteoblastic rimming, with intervening fascicles of spindle cell proliferation showing low nuclear grade. All samples were positive for MDM2 and/or CDK4 on immunohistochemical analysis; the antibodies stained many osteocytes, indicating that the bone is neoplastic rather than reactive. Three cases showed high-grade osteosarcomatous transformation juxtaposed to the low-grade osteosarcomatous component, reminiscent of the "dedifferentiation" phenomenon of skeletal low-grade osteosarcoma. Follow-up revealed local recurrence in 4 cases, but no distant metastases were documented. Recognition of this earlier underappreciated subtype of well-differentiated/dedifferentiated liposarcoma is important, because the fibroosseous component may seem so bland that it may be confused with benign metaplasia such as myositis ossificans, or conversely, the lipomatous component may be inconspicuous that it may be dismissed as normal fat, and such misinterpretation may potentially result in suboptimal treatment.