Chiloschista confusa M.J. Mathew, J. Mathew, P.M. Salim & Szlach. (Orchidaceae), a new species from the southern Western Ghats, Kerala, India, is described and illustrated based on morphological data. It has long been misidentified as C. fasciata, an Indo-Sri Lankan species. However, C. confusa differs from C. fasciata by its denser inflorescence with comparatively smaller flowers, glabrous inflorescence, pedicel and ovary, flattened callus disc with eglandular hairs, and protuberance of the spur. A key to the three species of Chiloschista known from south India (C. confusa, C. fasciata, C. glandulosa) is also provided.