A Dactylella isolate obtained from soil in the Bonin (Ogasawara) Islands, Japan is described and illustrated as a new species, D. chichisimensis. The fungus is characterized by single terminal multiseptate clavate or ellipsoidal conidia at the apex of simple conidiophores and mycelium that forms chlamydospores and sclerotia. A key is provided for six Dactylella species that produce primary clavate or ellipsoidal conidia at the apex of simple conidiophores.