A new species, Sphaerodes mycoparasitica (Ascomycetes, Melanosporales), was isolated from isolates of Fusarium avenaceum and Fusarium graminearum originating from wheat fields in Saskatchewan, and from Fusarium oxysporum originating from asparagus fields in Quebec, Canada. The species is characterized by a unique combination of ascospore size, shape (fusiform and triangular) and wall ornamentation (reticulate and smooth). Also, conidia are produced from simple phialides on the surface of ascoma peridial wall, on ascoma surrounding hyphae, and on irregularly branched conidiophores arising from hyphae. The closest relation of S. mycoparasitica is Sphaerodes quadrangularis, which has no detected anamorphic stage. The description of S. mycoparasitica, its phylogenetic position-based on DNA sequences of large subunit ribosomal RNA gene (LSU)-as well as a key for all known Sphaerodes species are provided.