This study reports a new species, Phellorinia pakistanica, from the xerophytic region of Mianwali, Punjab, Pakistan. Specimens were collected, analyzed morphologically, molecularly and through Scanning electron microscopy. Phylogenetic analyses based on ITS sequences revealed that Phellorinia pakistanica is closely related to P. herculeana. Key distinguishing features include its basidiome structure with a woody stipe, bulbous base, and distinctive exoperidium. The ‘Khumbi' is known for its nutritional and medicinal values amongst the rural masses and they are used in traditional medicines to treat nutritional deficiencies, illnesses, and as bandages for broken bones. Additionally, they are consumed as food, and as a fly repellent. It also shows antimicrobial activities against bacterial pathogens. This highlights the need for further research on Phellorinia species due to their economic and ecological significance.