Persea pumila, a new species of Lauraceae from a Brazilian high-altitude grassland is described and illustrated. The new species belongs to Persea subg. Eriodaphne. It is distinguished from other neotropical Persea species by the shrubby habit in combination with obovate, glabrous, abaxially papillose leaves densely overlapping each other, glabrous inflorescences, and sparsely pubescent flowers. Its morphological distinctiveness and its relationships with probable allied species are discussed.