Cutaneous leishmaniasis (CL) is a skin disease that manifests as ulcerated nodules, up to several centimeters in size, that persist for many months in spite of various therapies. The disease is a dermal infection with eukaryotic protozoa of the genus Leishmania, transferred by the bite of a female sand-fly, and therefore usually present on exposed areas of the skin such as limbs and face. The disease is endemic in specific geographical areas of Israel, mainly in the Jordan and Jericho valley, part of the Dead-Sea area, Kfar Edomim area, and parts of the Negev such as Ketziot and the Arava. Cutaneous leishmaniasis (CL) presents a significant health hazard in Israel, mainly to non-residents, such as soldiers or new immigrants, travelling to endemic areas. It is also not unusual to find patients with CL acquired during adventure travelling to South America. Treatment modalities available for treating CL are limited and often unpleasant. Over the past few years several new therapies for visceral leishmaniasis have become available raising hope for the development of more effective treatment options for CL. In this review we discuss the disease and its therapeutic options and also report a novel treatment for CL using ethanolic amphotericin B.