A new species of Orbilia related to O. luteorubella is described mainly based on morphological characters of its asexual morph and molecular data. The sexual morph does not significantly differ from O. luteorubella, whereas the asexual morph obtained from its ascospore isolate resembles members of the non-predacious genus Dactylella, because it has fusiform phragmoconidia borne singly at the apex of conidiophores. Phylogenetic analysis showed that this strain clustered with a clade that included available strains of the O. luteorubella aggregate and was distant from all analysed Dactylella species. Within this clade, the new strain fell between species with filiform conidia and those of a Pseudotripoconidium anamorph. By combining morphological and phylogenetic analyses, we conclude that our isolate belongs to a new taxon. Pleomorphism of the new taxon is described and discussed.