Fargesia microauriculata M.S. Sun, D.Z. Li & H.Q. Yang (Poaceae, Bambusoideae), a new species from the southern end of the Gaoligong Mountain Range in northwestern Yunnan Province of China, is described and illustrated. It resembles F. albocerea, F. lushuiensis and F. papyrifera, but is distinguished by internodes' distal parts being densely covered by brown setae, nodes without white powder and wax, brown-red young culm sheaths, auricles of culm sheaths 5 mm long and 1–2 mm wide, as well as by 2–4 florets per spikelet, a 3–5 mm long pistil, and 2 stigmata. It is only known from the alpine region at 2900–3200 m a.s.l. at Pianma Town of Lushui County.