Rhizochaete is a small genus of crust fungi that is closely related to Phanerochaete. A new species Rhizochaete belizensis is described, and three new combinations are proposed. Morphological studies and molecular sequence data from two nuclear ribosomal DNA regions (ITS and LSU) support the recognition of R. belizensis which is closely related to R. radicata. Analyses of sequence data also support the transfer of Phanerochaete flava to Rhizochaete. Phanerochaete percitrina from Cameroon and Peniophora rhizomorpho-sulphurea from India are transferred to Rhizochaete based on morphological studies of type specimens. Phanerochaete rubescens from Taiwan is placed in synonymy under R. borneensis. In addition, Phanerochaete mauiensis is redescribed and illustrated. A key to 13 accepted species of Rhizochaete and three morphologically similar species is presented.