In the present study, we describe the new species, Psora altotibetica, from nine localities in China (Tibetan area) and Nepal. The study includes analyses of anatomy, secondary chemistry, and DNA sequence data of P. altotibetica and presumed close relatives. Psora altotibetica resembles P. indigirkae morphologically, but is phylogenetically closer to P. tenuifolia and P. vallesiaca. It differs from P. indigirkae in the colour of the apothecia, the size of the ascospores, and in the secondary chemistry. The species is terricolous and was collected in the alpine zone of the Great Himalayas between 4230 and 5000 m altitude. Psora tenuifolia and P. vallesiaca are here reported as new to China and the Himalayas.