Allocetraria yunnanensis R. F. Wang, X. L. Wei & J. C. Wei is described as a new species from the Yunnan Province of China, and is characterized by having a shiny upper surface, strongly wrinkled lower surface, and marginal pseudocyphellae present on the lower side in the form of a white continuous line or spot. The phylogenetic analysis based on nrDNA ITS sequences suggests that the new species is related to A. sinensis X. Q. Gao.