The type materials of Paecilomyces sinensis, including herbarium specimen and ex-type strain, were re-examined to clarify its relationships with other species.Morphological observations on the strain grown in various culture media revealed that the fungus was morphologically related to Polycephalomyces, since it produced conidial mass and lanceolate or narrowly lageniform phialides.Six genes, including ITS, nrSSU, nrLSU,tefl, rpbl and rpb2, were amplified from the type materials and used in phylogenetic analyses to determine the systematic position of the fungus in the framework of clavicipitaceous fungi.The results place P.sinensis with Polycephalomyces forrnosus, the type species of Polycephalomnyces, and Cordyceps rarnosopulvinata forming a clade unaffiliated with the known families of clavicipitaceous fungi.Based on both morphological and molecular data, a new combination, Polycephalomyces sinensis, is proposed for Paecilomyces sinensis.The new clade found in this study is designated as Polycephalomyces clade and expands the phylogenetic diversity for clavicipitaceous fungi.The teleomorph-anamorph connection between Berkelella and Polycephalomyces previously conceived cannot be retained as the type species ofPolycephalomyces, P.formosus, is closely linked to species of Cordyceps s.l.in the new clade.