Molecular and morphological data were used to assess the taxonomic placement of an undescribed lichenicolous basidiomycete teleomorph collected in Luxembourg, Belgium and Germany. The new species is ecologically and morphologically similar to Marchandiobasidium aurantiacum, teleomorph of the common bulbilliferous lichen pathogen Marchandiomyces aurantiacus. However phylogenetic analysis of nuclear and mitochondrial rDNA sequences indicated a close relationship of the new species— not to M. aurantiacum but to turf grass pathogens in genera Laetisaria and Limonomyces, including the generic type of Laetisaria. We are including the new species in Laetisaria based on strong statistical support for the clade containing these teleomorphs and several Marchandiomyces anamorphs. The morphological and ecological diversity of this clade indicates a potentially significant evolutionary role played by lichen-associated species in the Corticiales. Key words: Corticium, Erythricium, Marchandiobasidium, Marchandiomyces, mitosporic fungi, phylogeny, rDNA.