In this study, a new species, Limacella bajaurensis , from the Gaber Chena District, Bajaur Khyber Pakhtunkhwa, Pakistan, is reported. The new species is described through molecular phylogenetic analysis of combined internal transcribed spacer (ITS) and 28S datasets, as well as a comparison of its macro‐ and micromorphological characteristics with those of similar taxa. It forms a separate clade in the phylogenetic tree and is distinguished by having umbonate, plane to broadly convex, grayish reddish orange to light reddish brown and dark reddish brown at the center, and larger subglobose to broadly ellipsoid basidiospores 4.1–4.9 × 2.84–4.2 µm. A full description, illustrations, and phylogenetic analysis results of the new species are provided.