Neolentinus is a brown-rot genus (order Gloeophyllales) rarely found in the Neotropics. The only known species in the region is N. cyatiformis, reported from Argentina. This paper reports the discovery of a second species of Neolentinus in the Neotropics: N. cirrhosus. The species has a set of unique characteristics: lentinoid habit, squamulose pileus with ciliate/pilose margin, decurrent lamellae, small basidiospore size, and habitat on sand, with soil-incrusted sclerotium. The species is described, illustrated and discussed.