A new species in the genus Phaeophyscia is described from Azad Jammu and Kashmir, Pakistan, supported by nrITS sequences, morphology and chemistry. The taxon is characterized by a green to greyish green thallus, usually narrow (0.5–2 mm), flat to convex lobes with abundant marginal soralia, black, dense small rhizines, small Physcia-type ascospores 18–22 × 8–10 μm and an absence of pycnidia. Differences from related species are discussed. moist temperate forest, molecular studies, Muzaffarabad, phylogenetics, siliceous rocks