A fungal strain was isolated from a soil sample collected in Korea and designated as YW23- 8. Based on a sequence analysis of the internal transcribed spacer (ITS) regions, the isolate was assigned to the genus Sarcopodium. Moreover, a phylogenetic analysis based on the concatenated nucleotide sequences of the ITS regions and the large subunit of the nuclear ribosomal RNA (LSU) gene showed that the strain YW23-8 occupies a distinct phylogenetic position within Sarcopodium. The isolate had significant differences from its closest neighbors, S. circinosetiferum, S. circinatum, S. macalpinei, and S. vanillae. Morphological features such as different conidial structures, the absence of septation in conidia, and the presence of milky white watery droplets along with the results of the phylogenetic analysis clearly distinguish YW23-8 from the closest Sarcopodium species. We therefore conclude that strain YW23-8 represents a novel species of the genus Sarcopodium for which we propose the name Sarcopodium terrigenum.