The previously monotypic genus Araeolepia is reviewed. As defined herein the genus includes four species: three from USA, A. subfasciella Walsingham, A. leuschneri n. sp., and A. ustulana n. sp.; and one from USA and Mexico, A. triangula n. sp. The systematic position of Araeolepia is revised based on comparisons of morphological characters with other lepidopterans. The thoracic and abdominal articulation and the presence of the cubital pecten on the hindwings indicate that Araeolepia are associated with the apoditrysian superfamily Carposinoidea rather than Plutellidae in Yponomeutoidea as previously proposed. Similarities of the male and female genitalia among Araeolepia, Ellabella, and Lotisma suggest that they may belong to the same family, Copromorphidae. Photographs of adult habitus and genitalia, when available, are provided for all described species of Araeolepia.