Background: Vancomycin resistant Staphylococcus aureus (VRSA) is an important multi-drug resistant organism of public health importance. Most strains have been isolated in hospitalized patients. However, there are rare case reports from community as well. Case Report: We report a case of community acquired pneumonia with empyema due to vancomycin and teicoplanin resistant Staphylococcus aureus. Conclusion: The present case is a community acquired infection and re-emphasizes the need for rationale antibiotic policy and appropriate infection control measures.