Conocybe is a large assemblage of small and delicate brown mushrooms, growing saprotrophically in roadsides, lawns, and forest floors. The delimiting characters of the genus are a conical pileus, microscopically with characteristic oil‐flask shaped (lecythiform) cystidia (cells with a rounded head or capitulum and a broad base), and rusty‐brown basidiospores with a prominent germ‐pore. Phylogenetically, Conocybe is monophyletic in Bolbitiaceae , differentiated from its close relative Pholiotina by the absence of an annulus. In this study, a new species, Conocybe salalahensis and a new report of Conocybe karakensis are described from the Dhofar region, southern Oman. Species were described based on morphological characters of basidiomata and phylogenetic analyses of three DNA regions, including ITS, 28S and EF‐1α . Conocybe salalahensis is characterized by a broadly conical pileus with acute center, and lecythiform caulocystidia, cheilocystidia, and pileocystidia. A detailed description, photographs, illustrations, and morphological comparisons with similar species are provided. Based on the presence of lecythiform caulocystidia and phylogenetic position, the new species is hypothetically classified in C . section Conocybe . Furthermore, we also report the presence of Conocybe karakensis in Oman, extending the distribution of this species. Conocybe karakensis was previously known only from its type locality in Pakistan.