A new species of Periconia found in the southern region of Xizang, China, was described and illustrated based on morphological features and DNA sequence data. Periconia shannanensis was isolated from dead wood, and is characterized by hairy, brown to dark brown colonies, apical branched, septate and long conidiophores. Additionally, it displays subglobose, smooth to verruculose conidiogenous cells and verruculose, guttulate, catenate conidia. Phylogenetic analysis of concatenated LSU, SSU, ITS and tef1 sequences showed that P. shannanensis was closely related to P. artemisiae. Morphologically, the former differs in its longer and wider conidiophores and larger conidia. The combination of morphological observations and molecular data supports the establishment of this new species.