A new Dactylella species lacking nematode-trapping devices was isolated from submerged wood during a survey of aquatic fungi in Qilu Lake, Yuxi, Yunnan province, China. Conidiophores are long and repetitive branched, forming 1-3 short conidia in sympodial arrangement at the apex. Conidia are commonly elongated fusoid, rostrate, slightly inflated at the middle, straight or curved, 5-9 septate, tapering evenly towards base, end cell elongate, tapering to a point at the distal, 88.9-143.1(120.8) × 8.2-11.2(9.9) m, end cell long 22.4-40.2 m. The new species is introduced, characterized and illustrated in this paper.