We sampled five Achnatherum sibiricum populations and documented the distribution and abundance of endophytes. In total, 438 fungal isolates were obtained. They were classified into 11 morphotypes based on growth rate and morphological characters including colonial morphology, the production of conidiogenous cells, conidial size and dimension on potato dextrose agar medium. Both tub2 and actG sequences identified only a single product in all representative isolates from three dominant morphotypes. All sequences fell in the same main clade, including Neotyphodium gansuense and Neotyphodium gansuense var. inebrians from another Achnatherum species in North China, Achnatherum inebrians, and Neotyphodium guerinii from European grasses Melica ciliate and Melica transsilvanica. Based on both morphological and phylogenetic analyses, isolates in morphotype I were described as representing a novel Neotyphodium species, Neotyphodium sibiricum sp. nov. Isolates in both morphotype II and III were identified as representing N. gansuense. Both tub2 and actG sequences suggested that N. sibiricum and N. guerinii were probably derived from a common Epichloë ancestor.