A new genus Fasciodontia is described to classify Xylodon bugellensis, known mostly from Europe, and one new species, F. brasiliensis, collected in Atlantic rainforests of Brazil. A new combination F. bugellensis is proposed and the lectotype for this taxon was selected. The genus is characterized by fascicles of skeletal-like hyphae in aculeal trama and thick-walled basidiospores. The generic concept was supported by Bayesian and Maximum Likelihood molecular phylogenetic reconstructions based on the ITS region and D1/D2 domains of 28S rRNA gene. The morphological distinctions between Lyomyces pruni and F. bugellensis (earlier considered as conspecific) and their phylogenetic independence are described and illustrated. Additionally, Deviodontia pilaecystidiata is put into the genus Kneiffiella; Hyphodontia mongolica is referred to synonyms of K. pilaecystidiata. The phylogenetic position of Hastodontia halonata, Kneiffiella alienata, and Lyomyces fimbriatus are discussed for the first time, and the new combination Lyomyces fimbriatus is introduced.