A new species of Sauvagesia subsect. Vellozianae is described, Sauvagesia paganuccii, from material collected in campo rupestre vegetation of Bahia state, northeastern Brazil. The new species resembles S. insignis but differs mainly in its densely shrubby habit and smaller leaves and pedicel. Among the species of subsect. Vellozianae in Bahia, S. paganuccii is now the only one occurring in campos rupestres outside the Serra do Sincorá of Chapada Diamantina. An identification key to species of Sauvagesia subsect. Vellozianae from Bahia is also provided.