Background: Subarachnoid hemorrhage (SAH) as a complication after cerebello-pontine (CP) angle surgery has rarely been described in literature. We intended to cite the preceding scenario leading to this event and its successful management based on anesthetic and surgical directed approach. Case presentation: A middle aged female patient presenting with complaints of hearing loss, vertigo and swaying gait underwent surgery for cystic vestibular schwannoma under cranial nerve monitoring. The anesthetic maintenance was solely based on entropy guided propofol infusion. Intra-operatively the patient suffered hemorrhage during the tumor decompression, which was eventually stopped after usage of SURGIFLO. Post-operatively, the neuro-imaging revealed SAH. It was managed in ICU on the lines of prevention of vasospasm and patient was subsequently discharged from the institute. Conclusions: SURGIFLO is effective in control of intra-operative grade 3 bleed. Nimodipine usage is indispensible for management of vasospasm. Maintenance of hemodynamics during the crisis plays critical role towards a good outcome of the patient following the surgery.