Erato DC. contains five species, distributed from Costa Rica to Bolivia, with its main center of diversity in Ecuador. The revision includes a new species endemic to Costa Rica and Panama, Erato costaricensis E. Moran & V. A. Funk. Morphological and molecular data support Erato as a monophyletic group, sister to Philoglossa. The phylogenetic analysis based on morphology used Munnozia Ruiz & Pavon, Chrysactinium (H.B.K.) Wedd., and Philoglossa DC. as outgroups. The phylogeny supports the monophyly of Erato, but the relationships among the species within Erato have only weak support. The genus is believed to be a recent radiation because of the morphological similarity among the taxa and their location in some of the youngest areas of the Andes.