A Cylindrocladium-like hyphomycete collected on leaf litter of Celtis tala in Argentina had rDNA sequence data (ITS and LSU) that showed it resides in the Hypocreales, and is a member of the Nectriaceae, closely related to, but distinct from Cylindrocladium. A new genus, Dematiocladium and species, D. celtidis gen. sp. nov. is, therefore, introduced to accommodate this fungus. Based on morphology, it can be distinguished from other conidial hypocrealean genera with hyaline, penicillate conidiophores and cylindrical conidia by lacking stipe extensions and vesicles, and by the presence of brown to dark brown, thick-walled setae.