Phellinopsis, a recently proposed genus, differs from other genera in Hymenochaetaceae in having setae arising from tramal hyphae and hyaline basidiospores that become pale yellowish with age. The monophyly of 11 taxa, including seven from China, was strongly supported in our phylogeny of ITS sequences. Two species, Phellinopsis junipericola and P. resupinata, are newly described and illustrated from Chinese specimens based on morphological and phylogenetic evidence, bringing the number of known Phellinopsis species worldwide to four. Phylogeny and genetics showed that the North American species, Phellinopsis occidentalis, had an earlier divergence from the other three species. Phellinopsis conchata is distributed in China, Europe and North America, with the Chinese and North American specimens having a closer relationship. An identification key to the four species of Phellinopsis is provided.