A revision of the generic and infrageneric taxonomy of Podalyria (Fabaceae, Podalyrieae) is presented. The genus comprises 17 species, of which 16 are endemic to the Cape Floristic Region of South Africa and one extends eastwards to southern KwaZulu-Natal. Morphological, cytological and chemical characters are briefly discussed. A cladistic analysis of 19 morphological characters and one chemical character resulted in a partially resolved topology with two main clades. These two groups are described as sections, namely Villosae and Podalyria. Two new species are described: P. leipoldtii and P. variabilis, and one new combination P. rotundifolia is made. Historically, the application of names in Podalyria has been variable and unreliable, so that considerable effort was required to unravel the intricate nomenclature, synonymy, and typification of the species. This revision (the first since 1862) also includes full descriptions, diagnostic characters, photographs, illustrations, and distribution maps. The red data list status of five of the threatened species is given.