Whereas examples of insular speciation within the endemic-rich Macaronesian hotspot flora have been documented, the phylogeography of recently evolved plants in the region has received little attention. The Macaronesian red fescues constitute a narrow and recent radiation of four closely related diploid species distributed in the Canary Islands (F. agustinii), Madeira (F. jubata), and the Azores (F. francoi and F. petraea), with a single extant relative distributed in mainland southwest Europe (F. rivularis). Bayesian structure and priority consensus tree approaches and population spatial correlations between genetic, geographical, and dispersal distances were used to elucidate the phylogeographical patterns of these grasses. Independent versus related origins and dispersal versus isolation by distance (IBD) hypotheses were tested to explain the genetic differentiation of species and populations, respectively. Genetic structure was found to be geographically distributed among the archipelagos and the islands endemics. The high number of shared AFLP fragments in all four species suggests a recent single origin from a continental Pliocene ancestor. However, the strong allelic structure detected among the Canarian, Madeiran, and Azorean endemics and the significant standardized residual values obtained from structured Bayesian analysis for pairwise related origin hypotheses strongly supported the existence of three independent continental-oceanic colonization events. The Canarian F. agustinii, the Madeiran F. jubata, and the two sister F. francoi and F. petraea Azorean species likely evolved from different continental founders in their respective archipelagos. Despite the short span of time elapsed since colonization, the two sympatric Azorean species probably diverged in situ, following ecological adaptation, from a common ancestor that arrived from the near mainland. Simple dispersal hypotheses explained most of the genetic variation at the species level better than IBD models. The optimal dispersal model for F. agustinii was a bidirectional centripetal stepping-stone colonization pattern, an eastern-to-western volcanism-associated dispersion was favored for F. francoi, whereas for the recently derived F. petraea a counterintuitive direction of colonization (west-to-east) was suggested. The population-based phylogeographical trends deduced from our study could be used as predictive models for other Macaronesian plant endemics with similar distribution areas and dispersal abilities.