A peltate‐leaved new species, Oreocharis scutifolia Z. Xie & H. H. Kong, endemic to the Dry–Hot Valley of the Jinsha River Basin, Yunnan, China, is described and illustrated here. It is similar to O. cordatula (Craib) Pellegr. and O. aurantiaca Baill. in floral characters but differs in its peltate leaf blades, which are unique in the genus (and only occur in one population of O. henryana Oliv., but its flowers are smaller, campanulate, and deep purple). Molecular phylogenetic analysis based on transcriptome data confirmed its systematic position to be sister group with O. henryana, O. cordatula, O. minor Pellegr., and O. aurantiaca Baill. (LPP = 1), and well apart from the remaining members of the genus. The new species O. scutifolia is assessed as “Critically Endangered” following the IUCN categories and criteria, due to its small and single population, thus making it face serious threats from human disturbance, invasive plants, shrinking habitat, and decreasing habitat quality.