Inocybe kohistanensis, a new species, is described from Swat, Khyber Pakhtunkhwa, Pakistan, on the basis of morphological characters as well as molecular phylogenetic analyses. The new species is characterized by a fibrillose reddish brown pileus, pruinose stipe with a prominent marginate bulb, and nodular spores. Sequences from the internal transcribed spacer region suggest that I. Kohistanensis is distinct from all other Inocybe species sampled.