Circinaria transbaicalica – is a saxicolous dwarf-fruticose lichen species, with a range spreading from the Trans-Baikal territory and China to the Ural Mountains. The study of ITS and mtSSU sequences showed that it is relative to the crustose Circinaria arida, previously known from the USA only, and to the radiate C. maculata described from China. Specimens determined as Circinaria transbaicalica were split into two separate branches likely representing cryptic species that have no distinct morphological and anatomical differences but having a different distribution. The ‘Circinaria transbaicalica‘ group represents an example of an evolution of life forms of crustose lichens from the uniform cracked- areolate to the dwarf-fruticose morphology. Aspicilia transbaicalica, dwarf-fruticose lichens, ITS, Megasporaceae, morphology.