Bungona illiesi (Lugo-Ortiz & McCafferty) n.comb. was described from a single specimen collected in northern Queensland, Australia, as a species of Cloeodes Traver. The distinguishing characteristics of a minute maxillary palp, the absence of spination on the mandibles between the mola and prostheca, narrow-elongate gills, and medially expanded labial palps were later found to occur in Bungona narilla Harker, and the two species were synonymized. Extensive collecting in northern Queensland yielded larvae and adults of Bungona that differ from B. narilla in all life stages. We believe our specimens are equivalent to B. illiesi because they were collected only a few kilometres from the type locality, at least one specimen had both minute and normally sized maxillary palps, nearly all specimens had medially expanded labial palps, and the dorsal abdominal colour pattern was similar. Sequences of a 657-bp fragment of the mitochondrial gene cytochrome oxidase I supported the recognition of two species and confirmed the association of larvae and adults of B. illiesi. Interspecific p-distances ranged from 18.8–19.4% and the maximum intraspecific divergence observed was 1.7%. Based on the combination of morphological, mitochondrial, and biogeographical data, we show B. illiesi should be recognised as a valid species distinct from B. narilla. Larvae of B. illiesi differ from those of B. narilla by having fewer robust setae on the femora and a small lateral tooth on the outer incisor of both mandibles. Male and female adults differ from those of B. narilla by having less extensive red colouration on the abdominal terga.