A new wood-inhabiting fungal species, Fasciodontia yunnanensis C.L. Zhao sp. nova (Schizoporaceae, Hymenochaetales) is proposed based on morphological and molecular evidence. Fasciodontia yunnanensis is characterised by resupinate basidiomata with minutely odontioid hymenial surface and presence of submoniliform cystidia, and ellipsoid thick-walled basidiospores (3.1–5.7 × 2.1–4.1 µm). Sequences of ITS and 28S rDNA gene regions were generated, and phylogenetic analyses were performed with maximum likelihood, maximum parsimony and Bayesian inference methods. In the phylogenetic reconstruction of Hyphodontia s. lato based on a concatenated ITS + 28S data set, the new species nested in Fasciodontia where it formed a monophyletic lineage and grouped with F. brasiliensis and F. bugellensis.