This study reports Entoloma shandongense (first described from China) as a new record for the macrofungal mycota from India. A phylogenetic analysis based on ITS show that E. shandongense can be readily distinguished from other blue coloured morphologically similar species, such as E. atrum. A detailed taxonomic description with illustrations and an artificial key to blue-coloured Entoloma species from India and surrounding areas are provided.