Ajania flavida, a new species from western Sichuan and eastern Xizang, China, is described and illustrated. It is readily assigned to A. sect. Ajania owing to its straw-colored, glossy involucres and marginally whitish scarious phyllaries. Within the section, it is distinct in being a shrub of 1−2 m in height, and in having creamy yellow florets. It is superficially similar to A. ramosa in A. sect. Phaeoscyphus, but can easily be distinguished by, among other characters, the plant height, color of the florets and margins of the phyllaries. In addition, we provide a distribution map of the new species.