A new species of Chionoloma Dixon, C. fractum M.Alonso, M.J.Cano & J.A.Jiménez, is described from Central and South America (Argentina, Belize, Bolivia, Brazil, Colombia, Ecuador, Panama, Peru and Venezuela). The species is distinguished morphologically by lanceolate or linear leaves, with apices usually broken, leaf margins strongly sinuous, basal marginal cells forming a V-shaped pattern, dorsal surface cells of the costa quadrate-round and papillose toward apex, costa percurrent or excurrent in a short mucro and central strand present. Drawings and light microscope photographs of the new species are provided. Moreover, the principal distinctive characters that separate it from the nearest species of Chionoloma are discussed and a key to Neotropical species of the genus is provided.