Xanthoma: Yellowish firm nodules in the skin frequently indicating underlying disease, such as diabetes, disorder of fats (lipid disorder or hyperlipidemia), or other conditions. A xanthoma is a kind of harmless growth of tissue. Under the microscope, it can be seen to be composed of lipid-laden foam cells. These cells, termed histiocytes, contain lipid material in their cytoplasm (the nonnuclear zone of the cell). The word ôxanthomaö is made up of ôxanth-ô from the Greek roots ôxanthosö (yellow) and ôomaö (swelling) = a yellow swelling. A xanthoma is a circumscribed yellow swelling, a yellowish nodule.