Changbai Mountain, located in northeast China, is one of the areas with the most complete natural ecosystem preservation in China. A new species, Didymodon changbaiensis C.Feng, J.Kou, H.-X. Xiao & T.-T.Wu from north slope of Changbai Mountain in Jilin Province of China is described and illustrated. It is characterised by ovate or ovate-lanceolate leaves that are appressed when dry, acute leaf apex, lamina red or reddish-orange with KOH, unistratose lamina throughout, plane and unistratose leaf margins, percurrent costa with one layer of guide cells and without ventral stereids, upper and middle laminal cells with elliptical papillae over the transverse walls between two immediately adjacent cells and basal laminal cells not differentiated from the median cells. Our morphological analyses and molecular results, based on DNA sequences of ITS, rps4 and trnM-trnV, confirm that D. changbaiensis is revealed to be sister to D. daqingii J. Kou, R.H. Zander & C. Feng. This new species is compared with similar species and its phylogenetic position and ecology are discussed.