During the identification of Moroccan samples a plant belonging to Isothecium with characteristics of I. alopecuroides (Dubois) Isov. and, to a smaller degree, I. algarvicum W.E. Nicholson and Dixon was found. Problems with attributing the plant to any of the European Isothecium species and the known large morphological variation in I. alopecuroides suggested that molecular studies were needed to evaluate patterns of relationships in this complex. We investigated one nuclear and one chloroplast marker from 66 samples (gametophytes) of Isothecium alopecuroides and from 18 samples of other Isothecium species. Parsimony and likelihood (via Bayesian analysis) were used as optimality criteria to compute phylogenetic trees. Bootstrapping and posterior probabilities were used, not only to quantify support, but also to evaluate competing phylogenetic alternatives in consensus networks. Finally, split decomposition and neighbour net analysis were used to compute distance based split networks, in order to avoid systematic error. The observed discrepancy among morphological and molecular data suggests that none of the European species Isothecium alopecuroides, I. holtii and I. myosuroides are monophyletic as defined by traditional morphological characters. Convergent morphological evolution cannot explain the discrepancy in this particular case; instead exchange of genetic material among Isothecium species is considered a potential explanation for the molecular diversity within morphospecies.