Dactylaria tunicata sp. nov. from submerged wood in a freshwater stream from Australia is described and illustrated. It differs from all previously described species of Dactylaria in having uniseptate conidia with a hyaline sheath. The 41 species of Dactylaria accepted by de Hoog are listed, together with a further 41 validly published species of Dactylaria post de Hoog. A taxonomic key to 37 of the 41 post de Hoog species is provided, based on the literature, together with a composite illustration of their conidial morphology. The other four species are discussed, but they are not considered to be Dactylaria species (sensu de Hoog).