By transferring Cystoderma paradoxum Smith & Sing. and Vaginata umbonata Sumst. to the genus Squamanita and the description of the new species, S. pearsonii, the number of species of that genus is raised from two to five. In addition two more species of Squamanita are provisionally described. An emended description of the genus and a key to the species is given. The production of abundant chlamydospores on special conidiophores is described in three species. The relationships of the genus are discussed.