Stelis machupicchuensis Collantes & C. Martel, from the cloud forest of Cusco, Peru, is proposed as a new species. The new species is similar to S. antennata Garay, from which it differs in the oblique subpentagonal-trullate petals, pentagonal-subtrullate lip and subquadrate to suborbicular callus. A description, illustrations and taxonomic account are provided.