Psittacosaurus is the most speciose nonavian dinosaur genus, represented by at least 10 (and possibly as many as 19) species uncovered over a wide geographic range. Here, we report a new species of large-bodied Psittacosaurus from the Ondai Sayr locality in central Mongolia, which has hitherto produced only one other Psittacosaurus specimen. This new species is characterized by: (1) an elongate snout, with a gently inclined rostronasal margin, (2) a cranium dorsally convex rather than flat, (3) a subtemporal length less than 40% of total skull length, (4) a maxillary lamina that cups the posterior toothrow, (5) five premaxillary foramina arrayed in an arc, (6) an antorbital fossa as long as it is wide, and (7) a palpebral with a well-developed posterior tonguelike process. Psittacosaurus amitabha is resolved as the most basal member of the genus Psittacosaurus in our phylogenetic analysis. This taxon expands our knowledge of the already-speciose genus Psittacosaurus as well as our understanding of the Ondai Sayr fauna, which is poorly known in comparison to other Mongolian Early Cretaceous localities.