Pseudosperma citrinostipes sp. nov. from southwestern China is described and illustrated based on morphological, ecological, and molecular data. The new species is characterized by a medium-sized slender habit, straw yellow to golden yellow pileus, crowded lamellae without olive tinges, an equal stipe with lemon yellow to golden fibrils, large ellipsoid to subphaseoliform basidiospores, subfusiform to lageniform cheilocystidia, and the presence of caulocystidia at the stipe apex. Phylogenetically, P. citrinostipes is placed in the P. rimosum complex and is sister to the rest of the taxa of the species complex.