Abstract Nectria dematiosa exhibiting orange red colour perithecia on stems and branches of young and old apple trees were reported under field conditions during 2020 and 2021. Reddish discoloration followed by papery appearance of stem and branches were the characteristic symptoms observed. Ascomata were non‐papillate, surface irregular comprising numerous cylindrical to narrowly clavate asci. Ascospores were ellipsoidal to fusiform, straight or slightly curved, hyaline with 0 to 1‐septa. Richard and Royal Delicious variety of apple were more susceptible with moderate to high severity of the European canker. Based on nucleotide homology and phylogenetic analysis, the pathogen was confirmed as N. dematiosa (accession no. OQ152022). To the best of our knowledge, this is the first report of N. dematiosa causing European canker of apple in India.