A new species of Phalotris from the nasutus group, Phalotris shawnellasp. nov., is described. It can be distinguished from the other members of the group by having the following combination of characters: 1) fifth supralabial in contact with parietal, 2) vertebral stripe present, 3) yellowish nuchal collar (2 or 3 dorsal scales long), 4) dull reddish color of head, 5) broad, solidly or near solidly dark, lateral bands, 6) red-orange ventral scales lightly and irregularly spotted with black mainly on the posterior half of the body and 7) a bilobed, extremely asymmetrical hemipenis, with enlarged, curved, lateral spines. The species is only known from a recent specimen collected in the Cerrado zone of northeastern Paraguay at Rancho Laguna Blanca, San Pedro department, and two photographic records of live specimens from this and an additional locality. Limited ecological data based on observations of a captive individual, and a wild record, are provided, and a conservation assessment is performed for this extremely limited range Paraguayan endemic snake.