Since its description, Axelrodia lindeae has always been referred to as morphologically distinct from the remaining species of Axelrodia, with some authors questioning the monophyletic status of the genus. After a comprehensive analysis of representatives of Axelrodia, a new genus represented by A. lindeae as type species, plus two additional new species, is herein proposed. Besides its unique color pattern, characterized by two conspicuous midlateral stripes, the new genus is differentiated from the remaining characid genera by the dentary tooth row, implanted internally, and by the presence of a pseudotympanum crossed by a bundle of epaxialis musculature at its dorsal portion, dividing the pseudotympanum into two muscle hiatuses. Additionally, the phylogenetic relationships between the new genus and Axelrodia among the Characidae are presented.