A survey of the diversity and distribution of microfungi on Dracaena leaf litter in Songkhla Province (Thailand) yielded two collections of pestalotiopsis-like fungi. Analyses of a combined ITS, TEF1-α and TUB2 sequence data matrix were applied to infer the phylogenetic position of these new isolates in Pestalotiopsis. The phylogenies indicated that these two isolates were monophyletic and constituted a distinct lineage that perceived a taxonomic novelty in Pestalotiopsis. This clade shared a close phylogenetic affinity with P. adusta, P. krabiensis, P. pandanicola and P. papuana. The comparison of morphological features with the phylogenetically closely related taxa are given and the new species is introduced as Pestalotiopsis dracaenicola sp. nov. with comprehensive descriptions and illustrations herein.