Nicotiana gandarela Augsten & Stehmann (Solanaceae), sp. nov., a small 'tobacco' known only from one locality at Serra do Gandarela, in the state of Minas Gerais, Brazil, is described and illustrated. It is morphologically characterized by its rosulate basal leaves, red corolla with a short tube not inflated at the apex, and the peculiar habitat, a shaded site under a rocky outcrop ledge along a forested stream. Phylogenetic analyses based on a combined dataset of nuclear (ITS) and plastid (ndhF, trnLF, and trnSG) DNA sequences revealed that the species belongs to the Nicotiana sect. Alatae and is sister to the clade with the remaining species in the section. A key for the identification of Brazilian species of the section is given. The unusual habitat, the small population size, and the intense pressure of mining activities in the surroundings made the species assessed as Critically Endangered (CR), needing conservation efforts to avoid its extinction.