Campylocentrum insulare is a new species of Campylocentrum section Dendrophyllopsis from Santa Catarina, southern Brazil, a group of species characterised by the aphyllous condition. It is the smallest species known from this subtribe in the Neotropics, and is morphologically related to species of the Campylocentrum fasciola complex. It differs by its small size, an inflorescence and ovary that are minutely pubescent, a lip that is distinctly three-lobed, and a conic spur. A distribution map, illustrations, and an identification key that includes species of this genus from southern Brazil are provided.