The genus Lepidocephalichthys is revised and diagnosed as having the seventh and eighth pectoral rays modified in the mature male. Other cobitids have different pectoral rays modified (second ray in Cobitis). The 17 valid species of Lepidocephalichthys are discussed and compared. Fifteen species are redescribed: L. annandalei, L. arunachalensis, L. berdmorei, L. coromandelensis, L. furcatus, L. goalparensis, L. guntea, L. hasselti, L. irrorata, L. jonklaasi, L. lorentzi, L. manipurensis, L. micropogon, L. thermalis, and L. tomaculum; and two new species are described from Thailand, Laos, Vietnam, and Myanmar. Lepidocephalichthys kranos, new species, is distinguished from all other Lepidocephalichthys except L. irrorata by having conspicuous scales on top of the head and from L. irrorata by its more anterior dorsal fin placement and larger size. Lepidocephalichthys alkaia, new species, is distinguished from all other Lepidocephalichthys by a dark stripe extending from the snout, through the orbit, and continuing to the terminus of the caudal fin. Acanthophthalmus sandakanensis is reassigned from Lepidocephalichthys to Pangio based on its modified first and second pectoral rays. Sexual dimorphism in Lepidocephalichthys is discussed, as are the validity and taxonomic history of forked-tailed species. Species are illustrated, and a taxonomic key to species is provided.