During surveys of woodlands in Taiwan a previously undescribed fungus Dryadomyces amasae gen. sp. nov., was found in the sapwood of dead angiosperm timbers in the gallery systems of the scolytine ambrosia beetle Amasa concitatus. The fungus grows predominantly in the immediate vicinity of the feeding beetle larvae and serves as a nutritional ambrosia fungus. The transmission of D. amasae to new breeding substrates is ensured by an oral mycetangium, a paired organ which was found in A. concitatus and A. aff. glaber near the mandibles and contained multiple cells of the fungus. Morphologically D. amasae resembles species of Ambrosiella. However, phylogenetic analysis based on partial nucSSU rDNA placed the fungus with certain species of the genus Ambrosiella within the Ophiostomatales, whereas the type species of Ambrosiella, A. xylebori, was assigned to the Microascales. A. xylebori, as well as A. ferruginea and A. hartigii, demonstrated phialidic conidial development, leading to an emendation of the description of the genus Ambrosiella. In contrast, Dryadomyces exhibited conidial development by apical, sympodial wall formation with prominent denticles bearing conidia. Other, previously described Ambrosiella species exhibited non-phialidic conidiogenesis, but lacked denticles on the conidiophores. Consequently, their classification needs further revision.