A new species Metapochonia lutea (Ascomycota, Hypocreales) is described and illustrated. This fungus differs from the other taxa in the genus Metapochonia by its production of intensive yellow pigment in culture. conidiophores with relatively complex verticillate branching. bean-shaped conidia, and by delayed development of one-celled and prominent thick-walled submerged chlamydospores usually in chains or irregular clusters of 3-5 cells. The new taxon is well supported by phylogenetic analysis of the internal transcribed spacer region (ITS) and translation elongation factor-1 alpha gene (TEF-1 alpha). Two new combinations are proposed for Pochonia parasitica and Pochonia cordycepisociata, as both species are resolved in a phylogenetic Glade with other Metapochonia species.