Phellinus castanopsidis sp. nov. is described and illustrated from southern China. This species is characterized by resupinate, annual basidiomata, a dimitic hyphal system, hooked hymenial setae, and ovoid to broadly ellipsoid basidiospores that are colorless, thick-walled, weakly dextrinoid, and moderately cyanophilous. Most of these morphological features are shared by Fomitiporia ellipsoidea, P. gabonensis, and P. caribaeo-quercicolus, although in the two latter species, the basidiospores are not dextrinoid. In a phylogenetic perspective, parsimony inferences based on LSU and ITS DNA sequence data show that these four species are closely related, forming a monophyletic clade. Furthermore, this clade is more closely related to the Phellinus ignarius clade (Phellinus s.s.) than to the Fomitiporia clade. Hence, F. ellipsoidea is transferred to Phellinus, and a new combination P. ellipsoideus is proposed also.