Three species of Entoloma with white basidioma in subgenus Alboleptonia from China are reported in this paper. Entoloma crocotillum is described as new to science from high altitudes in southwestern China. It is characterized by the small, white to pinkish pileus covered with matted-appressed fibrils, relatively large basidiospores with 5–6 angles, and the common presence of clamp-connections. Entoloma sulcatum, a new Chinese record, and E. stylophorum are documented based on new collections. Additionally, ITS (internal transcribed spacer region), nLSU (nuclear large subunit), and RPB2 (RNA polymerase II second largest subunit) sequences of E. crocotillum were successfully generated, and the phylogenetic positions of the three species among Alboleptonia species and other entolomatoid groups are preliminarily analyzed based on the combined nLSU and RPB2 dataset. The phylogenetic analysis showed that E. crocotillum is most closely related to E. sericellum and that Alboleptonia is not a monophyletic group.