A recent cladistic study suggested that the parasitoid wasp subfamily Dallatorrellinae is a monophyletic clade within the cynipoid family Liopteridae. The subfamily currently includes only four known species belonging to two genera, i.e., the monotypic genus Mesocynips Cameron, 1903 and the genus Dallatorrella Kieffer, 1911. The present study presents a revision of the subfamily, including descriptions of five new species in the genus Dallatorrella: D. maculata, D. maxima, D. pulla, D. ronquisti and D. sinica A key to the species of the subfamily is provided. Cladistic analysis of the subfamily at species level is undertaken and the biogeographic history of the subfamily Dallatorrellinae is reconstructed with respect to phylogeny. Contrary to an earlier assumption that the Dallatorrellinae originated in the Australian region, the phylogeny indicates that the Dallatorrellinae originated in southeastern Asia and dispersed to Australia at a later date. Consequently, the divergence between the Dallatorrellinae and the stem species of two other liopterid subfamilies, Liopterinae and Oberthuerellinae, corresponds with the separation between Laurasia and Gondwanaland.