Stigmidium bulbothricis, parasiting the thallus of Bulbothrix setschwanensis is described as new to science from India. This is the twelfth species of Stigmidium growing on members of the family Parmeliaceae, and the first species on Bulbothrix. It is characterized by stromatic wart formations on the thallus of the host, a compound of multilocular ascomata in a sterile stromatic tissue between and over the loculi, hamathecium of “type b” pseudoparaphyses, and hyaline, 1-septate narrow ascospores with rounded ends. The species is compared with other gall-inducing Stigmidium species and a key to all known Stigmidium species colonizing members of the lichen family Parmeliaceae is provided. Keywords: Himalaya, lichenicolous fungi, parmelioid.