A new species of lichenized ascomycete, Massalongia olechiana Alstrup et Søchting, sp. nov. (Massalongiaceae) is described from the South Shetland Islands and the Antarctic Peninsula. The species is distinguished by laminal isidia and 5-7-septate ascospores. The relationships with the other species of the genus are discussed. From Massalongia carnosa, recorded from both the Arctic and the Antarctic, the new species is distinguished by its lack of isidioid squamules and in having pluriseptate ascospores instead of 1-septate ascospores