Purpose: To determine the risk of lung cancer and inter-observer agreement for small pulmonary nodules either touching or near the pleura. Methods: Nodules were derived from two cohorts: patients from the National Lung Screening Trial with a solid nodule measuring 6-9.5 mm; and patients with incidental pulmonary nodules in our healthcare system with a solid nodule measuring 1-8 mm. Only the dominant nodule was evaluated for each patient. All malignant nodules as well as a random sample of 200 benign nodules from each cohort were included. Two fellowship-trained thoracic radiologists independently reviewed each case to record nodule morphology (compatible with lymph node or not) and nodule location (pleural-based, septal connection to the pleura, or neither). One radiologist measured the distance to the pleura. Results: After exclusion criteria were applied, a total of 434 nodules were included, of which 45 were lung cancers. Considering all pleural-based nodules with lymph node morphology as benign, 0-7% of cancers were misclassified as benign, specificity 33%, and kappa = 0.69. Considering subpleural nodules and those with septal connection to the pleura, 7-11% of cancers were misclassified (p = 0.16-0.25 versus pleural-based), specificity 40-52% (p < .0001), and kappa = 0.60. Considering nodules with lymph node morphology <= 2 mm from the pleura, 2-7% of cancers were misclassified (p = 1 versus pleural-based), specificity 41-36% (p < .0001), and kappa = 0.78. Conclusion: Considering nodules with lymph node morphology with septal connection, or those <= 2 mm from the pleura, as benign does not lead to significant misclassification of lung cancers as benign. (c) 2024 The Association of University Radiologists. Published by Elsevier Inc. All rights are reserved, including those for text and data mining, AI training, and similar technologies.