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Phylogenetic analyses of ITS and RBP2 sequence data from Phaeocollybia collections made at Cascade Head Experimental Forest in Oregon support recognition of a new species, P. chefensis. Collections of the new species were previously referred to P. tibiikauffmanii. Sequence analyses also establish that P. tibiikauffmanii is a synonym of P. spadicea, P. rifflipes is a synonym of P. lilacifolia, and P. rufotubulina is a synonym of P. californica. A revised general key to Pacific Northwest Phaeocollybia species is provided.