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Background&Objective: Cutaneous leishmaniasis is endemic in Iran and there are different systemic and local treatments for this disease. There is continuous investigation for finding the most efficient and economical method with little side effects for the treatment of cutaneous leishemaniasis. For this purpose we performed a comparative study between intralesional glucantime injection and cryotherapy in the treatment of papular cutaneous leishmaniasis. Materials&Methods: In this clinical trial 47 patients with papular cutaneous leishmaniasis refered to dermatology clinic of Ghaem hospital in Mashhad were assayed. All patients had positive direct smears. They divided randomly in two groups. First group treated by weekly intralesional glucantime injection and second group treated by weekly cryotherapy. The length of therapy for two groups was 5 weeks. Two groups were followed for 1.5 months after the last week of the treatment. Results: Thirty eight patients completed the study, 21 patients with 35 lesions and 17 patients with 36 lesions were treated by interalesional injection of glucantime and cryotherapy respectively. Clinically in interalesional glucantime group 37.1% of lesions and in cryotherapy group 22.2% of lesions completely cured. The difference between two groups was not statistically significant using chi-square test. Conclusion: Cryotherapy in comparison with interalesional glucantime injection is equally effective and also is cheaper with little side effect.