A new species, Astragalus roseocephalus sp. nov., is described and illustrated. It is known from Islamabad Capital Territory (Margalla hills), Rawalpindi district, Hazara and Kashmir. It belongs to Astragalus section Poliothrix Bunge. Morphologically, it is closely related to Astragalus leucocephalus Benth., but differs in height, presence of connate stipules, opposed to free lateral stipules in A. leucocephalus, stipule shape, leaf length, leaflet size, number, arrangement and shape, peduncle length, corolla colour, size and shape of standard, fruit shape and number of seeds. In addition, anatomy, pollen morphology, distribution and conservation status of the new species are discussed.