Omphalina microcarpa, a new basidiolichen species, is described from southern China based on morphological and molecular evidence. Morphologically, it is characterized by the small basidiomata measuring 3–12 mm in diam; pleurotoid, flabelliform to spathuliform and white to pale yellow pileus; lacrymoid to amygdaliform basidiospores measuring 4.5–6 × 4–4.5 µm; and having some maize yellow to deep yellow ellipsoid moss cells at the lamellae and stipe base. Phylogenetic analysis of the internal transcribed spacer (ITS) of ribosomal DNA showed that the new collections in this study formed an independent and undescribed lineage within the genus Omphalina. The present study provides a detailed description, including illustrations, comparative notes on related taxa, and results of its phylogenetic analysis. Key words: Asia, Novel taxon, Phylogenetic analysis, Taxonomy.