A new species in genus Inocybe is described and illustrated from Himalayan Moist Temperate forests of Pakistan. It is characterized by fibrillose, conical to convex, umbonate, brown to dark brown pileus, non-pruinose, fibrillose stipe with whitish tomentum at base, basidiospores smooth and comparatively larger (9 × 5.2 µm) and thicker caulocystidia (upto 21 m). Phylogenetic analyses of nuc rDNA region encompassing the internal transcribed spacers 1 and 2 along with 5.8S rDNA (ITS) and nuc 28S rDNA D1-D2 domains (28S) also confirmed its novelty.