The Australian species of Macrostelia fall within the circumscription of Hibiscus and the two taxa concerned are transferred to the latter genus. A new species is described. Three new names are proposed: H. tozerensis Craven & B.E. Pfeil (based on M. grandifolia Fryxell), H. macilwraithensis (Fryxell) Craven & B.E. Pfeil (based on M. grandifolia subsp. macilwraithensis Fryxell), and H. propulsator Craven & B.E. Pfeil (for the new species).