A fragrance releasing electronic candle comprises a housing constructed in the form of a cylinder and including a circuit board and a battery case, both of which are assembled therein, the battery case including a power switch arranged thereon and a bottom lid covered to the opening thereof, characterized in that the housing includes a receiving compartment formed on the top end thereof for receiving a fragrance piece, and includes a fan secured in the lower side thereof for the connection with the circuit board, the housing also includes an upper cover covered thereon and having a plurality of bores arranged thereon and having a central hole formed at the center thereof for inserting at least one LED lamp therein, such that the at least one LED may be electrically conducted with the circuit board, and a lamp shield in the shape of a flame may be adhesively affixed in the central hole of the upper cover.