Introduction: The umbilicus is a common site of various embryological anom-alies. Congenital umbilical cord hernia involves the herniation of abdominal con-tents into the umbilical cord, a condition often misdiagnosed as omphalocele. Case Presentation: We describe a rare case of a term male neonate with a prenatal diag-nosis of an umbilical cyst. Postnatally, the cyst ruptured, revealing exposed viscera with a blood-tinged discharge. Initial suspicion of congenital umbilical cord hernia led to imaging studies, which ruled out other gastrointestinal or genitourinary anomalies. Surgical exploration confirmed a urachal cyst, which was excised without complications. The patient had an uneventful recovery and was discharged in good condition. Discussion: Urachal cysts, though uncommon, can mimic other umbilical anomalies and may present atypically, as seen in our case. Early diagnosis and prompt surgical intervention are essential to prevent complications. This case em-phasizes the diverse presentations of urachal remnants and the importance of clinical suspicion in managing umbilical anomalies. Conclusion: Urachal cysts can present as umbilical cord hernias, complicating diagnosis. A thorough clinical evaluation, imaging, and surgical management are critical to ensuring favorable outcomes.