Paraphlomis octopus (Lamiaceae), a new species from the limestone area in Guangdong and Guangxi, China, is described and illustrated. Molecular phylogenetic analyses based on two nuclear ribosomal DNA sequences revealed that the new species is sister to P. pagantha, and the two species is further sister to P. kwangtungensis. All three species were further embedded within a clade consisting of species with hairy ovaries or nutlets. Morphologically, the new species can be distinguished from P. kwangtungensis in its acute apex of calyx tooth, from P. pagantha in its strongly reflexed lower corolla lip, and from both species in its inflorescence with peduncle-like stalks, and wider upper corolla lip. Based on extensive field survey, we also found that the type locality of P. kwangtungensis has long been misrecorded as eastern Guangdong in floras. The species is now only known from its actual type locality in Fengwan Town, northern Guangdong. A key to all species with hairy ovaries and nutlets is provided.