The genus Psilopezia is treated in a restricted sense, limited to three species. Psilopezia is characterized by its flat, appressed apothecia, large ascospores, non-amyloid asci, and bent or deformed paraphyses. The relationship between Psilopezia and Pachyella is discussed. Species are distinguished by the presence or absence of gel in the apothecium, anatomy of the apothecium, size of the apothecium, and by ascospore size. Descriptions, illustrations, and a key are provided for the included species.