The Retromolar canal (RMC) is an anatomic variation, the identification of which has become a clinical obstacle as the demand for surgical procedures in the retromolar area of the mandible has increased. The inferior alveolar nerve innervates the third molar and some of the muscles around the posterior region of the mandible, making surgical treatments in the retromolar area more challenging. The aim of this study was to evaluate the incidence of RMC using Cone Beam Computed Tomography (CBCT) and to evaluate the prevalence, course, and pattern of occurrence of RMC. CBCT images of 160 patients were collected and screened in the three spatial planes on both right and left sides for the presence of RMC. The incidence rates were determined according to gender, location, and type of RMC. Obtained data were subjected to statistical analysis. Out of the 160 subjects examined, 116 (72.5%) subjects presented with RMCs. It was found that 44 out of 72 males (45%) and 72 of 88 (68%) females presented with retromolar canals. Type B was the most common type. Based on the results of this study, retromolar canal should be considered as a normal anatomical variation rather than a rare finding. CBCT is suggested for a detailed evaluation and identification of the course of RMC before any surgical procedures to avoid post-operative complications. Very few studies have been conducted in Indian population and this study analysed the incidence of the RMC using CBCT images of South Indian population.