Based on specimens collected from Yunnan province, a new species Entoloma yunnanense Ying, is described and illustrated. Thoug 100 species of Entoloma are now known in China, no record of any species of Section Luctuaria (Romagn.) Sing. in subgenus Pouzaromyces (Pilat) Moser ex Noordeloos has been reported previously (Teng 1964, Tai 1979, Xie et al. 1986, Bi et al. 1990, Li et al. 1991, etc.) The distinctive characters of the new species are the mycenoid habit, small brown basidiocarps, the consipicuous squamulose pileus, pubescent stipe with brown strigose hairs at the base, and small spores and cheilocystidia. The Specimen cited is deposited in the Herbarium Mycologicum Instituti Microbiologici, Academiae Sinicae (HMAS): Color terminology follows that of Ridgway. (1912).