Lepraria malakandensis is described as new to science, based on morpho-anatomical, chemical, and phylogenetic investigations. The new taxon is characterized by leprose, white-grey to greenish-grey thallus with atranorin, zeorin, stictic acid, and constictic acid. Phylogenetic study of available sequencing data unambiguously distinguishes L. malakandensis from other species in the genus. A detailed description, illustrations and a comparison with related taxa is also provided. Key words: Lepraria, Phylogenetics, thallus, Stereocaulaceae, taxonomy.