ABSTRACT This study identifies Clonostachys reniana sp. nov., a newly recognized mycoparasitic fungus with potential as a biocontrol agent in sustainable agriculture and forestry. Dual cultivation experiments demonstrated a significant antagonistic activity of C. reniana against tree canker pathogens Botryosphaeria dothidea and Cytospora chrysosperma , achieving over 80% colonization of pathogenic colonies within 15 days, ultimately leading to the demise of the pathogenic colonies. Morphological assessment reveals differential features in conidiophore and conidia size and colony formation, setting C . reniana apart from closely related species, despite its phylogenetic proximity to C . pseudochroleuca as inferred from multilocus sequence analysis (ITS, LSU , RPB2 , TEF1 , TUB2 ). Phylogenomic tree and some gene families related to mycoparasitism also presented that this strain exhibits unique traits to the other species in Clonostachys , including the well‐known biocontrol agents Trichoderma atroviride and C. rosea strains. Therefore, the distinct taxonomic status, antagonistic efficacy, and genetic attributes, making the native species a promising new mycoparasitic fungus for a potential candidate in integrated disease management in agricultural and forest ecosystems.