The velvet-leaf hibiscus, Hibiscus krichauffianus F.Muell. (Malvaceae subfamily Malvoideae), is predominantly associated with sand dunes in the Australian arid zone but the name is presently also applied to plants occurring in different habitats on the southern edge of the range, and in disjunct locations in Western Australia and eastern Queensland. We investigated the morphological and environmental variation within H. krichauffianus throughout the geographic range. As a result, we have identified two new species, H. verecundus McLay & Albr. and H. calcareus McLay & Albr.; coined a phrase name, H. sp. Belele (D.W.Goodall 3417) for a putative new taxon; and recircumscribed H. krichauffianus. We also assessed material collected when the protologue of H. krichauffianus was published in the late 1850s and selected a lectotype from the original material identified.