AbstractPaecilomyces hepiali is an important fungus for medicinal and healthcare products generating an economic value of one billion CNY annually. It has been the subject of much research attention, especially due to its isolation from field collections of Ophiocordyceps sinensis (the caterpillar fungus or Dōng chóng xià căo) prized for its reputed medicinal properties. However, research on this important fungus is currently hampered by the fact that the holotype and ex‐type strain are unavailable for study on loan and in person due to institutional policies of confidentiality. Thus the holotype is effectively “lost” for the purposes of the Code. To facilitate further research and to enable the unambiguous application of the name, a neotype is designated for P. hepiali, based on a recent collection from the type locality.