Clavulina livida sp. nov. is described from southwestern China based on morphological and molecular evidence. This fungus is mainly characterized by light mineral gray to glaucous gray and simple or palmately branched basidiomata, basidia with two cornute sterigmata, presence of post-partal septa, slightly large globose to subglobose spores, abundant clamp connections, and absence of cystidia. Molecular phylogenic analysis of Clavulina livida and related species was carried out based on the sequences of internal transcribed spacer region of the nuclear ribosomal RNA gene (ITS). The combination of morphological characteristics and phylogenetic analysis confirmed that Clavulina livida as a new species in Clavulina. Morphological description, phylogenetic analysis and a key for Clavulina species from China are provided.