Gyalolechia pakistanica sp. nov. is described and illustrated from dry hot hilly areas of Khyber Pakhtunkhwa, Pakistan. The new taxon is characterized by a sublobate thallus with short, indistinct lobes, and by relatively large, 8–20 µm long ascospores with variable shape. According phylogenetic analysis of ITS sequences, the new species is sister to G. subbracteata, from which differs by the less distinctly lobed thallus and the larger ascospores. A tabular comparison between the new species and related and similar taxa is provided. Keywords: Caloplacoideae; Fulgensia; Khyber Pakhtunkhwa; taxonomy.