Gloeodontia xerophila sp. nov. is described and illustrated from material collected on dead xerophyte debris in the Canary Islands. This species is characterized by the odontioid hymenophore with short aculei, up to 2 mm long, dimitic hyphal system and amyloid, subglobose and verrucose spores, 4-5 x 3-4 microm. The new taxon is compared with other species in the genus and a key to the species of Gloeodontia is provided.