Porpidia kashmirensis sp. nov. is described from Azad Jammu and Kashmir, Pakistan. ITS and nrLSU sequences confirm its position within the genus Porpidia and, together with its morphology and chemistry, suggest that it is separate from other species of this genus. The species is characterized by a well-developed, pale grey thallus, up to 2.5 mm thick with areoles, containing confluentic acid, immersed apothecia, ascospores relatively small, 13–16 × 6.3–9.9 µm, paraphyses with relatively wider cap cells, upto 4.5 µm wide; differing from related species. Keywords: Peer chinasi; phylogeny; saxicolous lichens; taxonomy.