A new sequestrate species, Russula subterranea, is described and illustrated from China in this study. Morphologically, R. subterranea is characterized by the brownish red to deep brown basidiomata and hymenophore, yellowish-brown to brown, globose to subglobose basidiospores ornamented with very densely isolated amyloid spines, and the absence of pileocystidia, cystidioles sporadically, having conspicuous amorphous contents. Our phylogenetic analysis supported the taxonomic position of the new species in Russula subgenus Russula subsection Laricinae.