Literature and herbarium studies of the Neotropical orchid genus Fernandezia Ruiz & Pav. reveal that a number of previously recognized taxa should be synonymized, while at the same time it is necessary to propose several new taxa (45 species and 11 varieties). Fernandezia distichoides (Pachyphyllum distichum) and F. pectinata are lectotypified, and F. vaginata is neotypified. An infrageneric subdivision is proposed for Fernandezia, in which six sections are recognized. Section Capitata is transferred from Pachyphyllum, Orchidotypus is reduced to sectional level (as it was in Pachyphyllum), and three new sections are proposed, namely, section Breviconnata, section Gracillima, and section Lamellata.