In this monograph the three genera, Physalacria, Hormitaria, and Pseudotyphula, and the altogether 31 species of the mainly tropical to subtropical Physalacriaceae known in the world are described, illustrated, discussed, and keyed out. Three new species are introduced. This study is based on herbarium material which includes all available types. The classification adapted is that of Corner. No sides are taken in the controversy between Corner who places the family in the Aphyllophorales and Singer who places it in his Agaricales. But the point is stressed that several species present marasmioid characters.