Encalypta sylvatica F.J.Shen & J.C.Zhao is a new species found in northern China. This new species is distinguished from other species of the genus Encalypta Hedw. by 1) leaves oblong-ovate to oblong-ligulate, obtuse at the apex, with cells of the upper and median leaf having stellate papillae on the cell walls; 2) calyptra having a smooth surface with basal margins that are somewhat irregular; 3) peristome comprised of a single layer, and an absent preperistome. The distinctiveness of E. sylvatica was assessed by molecular phylogenetic analysis of the rps4 gene sequences. Encalypta sylvatica constitutes a new species under the Gen-Morph species concept and phylogenetic species concept based on its distinctive morphology and phylogenetic isolation.