The genus Pseudopsyra Hebard is reviewed and illustrated. Two new species Pseudopsyra yunnani and P. hannani, both from southern China are described. A key to the species is given. Two known species Pseudopsyra bilobata Karny 1926 and P. digitata Karny 1926 are transferred into the genus Holochlora Stål on the basis of examination on tegminal venation, male stridu-latory file, and male abdominal apex. The taxonomic position of Pseudopsyra among related genera, such as Psyrana Uvarov, Holochlora Stål, Tapiena Bolívar and Isopsera Brunner von Wattenwyl is discussed. We suggest that Pseudopsyra is more closely related to Psyrana.