A new Dactylella species lacking nematode-trapping devices was isolated from submerged wood during a survey of aquatic fungi in Qilu Lake, Yuxi, Yunnan province, China. Conidiophores are long and repetitive branched, forming 1–3 short conidia in sympodial arrangement at the apex. Conidia are commonly elongated fusoid, rostrate, slightly inflated at the middle, straight or curved, 5–9 septate, tapering evenly towards base, end cell elongate, tapering to a point at the distal, 88.9–143.1(120.8) × 8.2–11.2(9.9) µm, end cell long 22.4–40.2 µm. The new species is introduced, characterized and illustrated in this paper.