Two new species of Banksula are described. Banksula incredula enlarges the concept of the genus and is assigned to a new species group which is the likely sister group to the other Banksula. The species is unique in numerous morphological features, being the largest species in the genus, the first non-cavernicolous species, and occurring in the Coast Ranges of California, rather than in the Sierra Nevada foothills. The second new species, B. tutankhamen, is a typical member of the californica group but with more pronounced troglomorphy. Clinal variation is documented for B. grahami Briggs 1974, with B. elliotti Briggs & Ubick 1981, now placed as its junior synonym, representing the northern and most troglomorphic populations.