The slug moth family Limacodidae is a cosmopolitan group of economic importance, but its higher level systematics remains poorly understood. Here, we present a robust, higher level phylogenetic framework for Palaearctic and Indomalayan members of the family using sequence capture data of 148 nuclear protein‐coding and 13 mitochondrial markers from 145 samples of 126 species in 67 genera representing all five morphologically delineated limacodid lineages. Our results strongly support the monophyly of Limacodidae in which six major clades are recognized. The relationships among these clades are revealed, with Phrixolepia‐clade being the most basal group followed by Apoda‐clade, Euphlyctinides‐clade, Cania‐clade and Phlossa‐clade + Parasa‐clade, respectively. We also add publicly available DNA barcode sequences from additional species worldwide to this phylogenetic framework to infer the most completely sampled phylogeny of Limacodidae to date. Our work provides a major step towards understanding the systematics and evolution of slug moths.