A new Middle Triassic archosaur, Diandongosuchus fuyuanensis, gen. et sp. nov., is described on the basis of a skeleton from the Zhuganpo Member (Ladinian) of the Falang Formation, eastern Yunnan Province, China. It is primarily characterized by the nasal process of the premaxilla extending posteriorly well beyond the external naris, the super-sized coracoid foramen laterally bordered by the scapula, the ischium with a strongly expanded medial portion anteroposteriorly longer than the proximodistal height of the bone, and anteriorly notched cervical osteoderms. D. fuyuanensis is a pseudosuchian on the basis of the crocodile-normal tarsal joint and other features, such as the distal end of the ulna in posterolateral view squared off, osteoderms with a distinct anterior process, the presacral vertebrae dorsally covered by more than one osteoderm, dorsal osteoderm alignment dorsal to presacrals 10–24 staggered, the pubis-ischium contact reduced to a thin proximal contact, and the medial contact of the ischia extensive but the dorsal margins separate. It is from a marine deposit but shows few morphological adaptations of the postcranial skeleton for a semiaquatic way of life when compared with Qianosuchus from the Anisian limestone of the same area. A phylogenetic analysis derived from an existing data matrix suggests that the new archosaur occupies the basal-most position in Poposauroidea and further confirms the poposauroid status of Qianosuchus. On the basis of current information, the discovery of Diandongosuchus does not firmly underscore the affinity of the semiterrestrial vertebrate faunas between the eastern and western regions along the northern coastline of the Tethys.