Lepidagathis kurnoolensis sp. nov. is a decumbent, woody undershrub found in scrub forests dominated by quartzite stones near Orvakal Mandal in the Kurnool District. This new species resembles Lepidagathis diffusa C.B.Clarke with respect to habit, leaf shape, inflorescence, number of sterile bracts, corolla and fruits but can be distinguished by differences in spike size, morphology of sterile bracts and bracteoles, size and shape of bracts and calyx, and nature of seed. It also resembles Lepidagathis spinosa Wight ex Nees in spike appearance, sterile bract shape, corolla, and fruit shape but differs in its wood nature, leaf shape and size, bracts and bracteoles surface nature, seed morphology and anatomy of stem. A detailed description, illustrations, and field images are provided for easy identification along with a comparative table highlighting the morphological characters of allied species. The IUCN conservation assessment for this species is discussed.