A new species of Epidendrum from southern Peru is described and illustrated. Epidendrum yanatilense is similar to Ecuadorian E. pucunoënse, but differs in the small habit; non-resupinate flowers; small flowers; sepals oblong-lanceolate; petals apex rounded; 3-lobed lip and; two calli, large, laminar, rhomboid, leaning inwards, without mid-rib in the middle. Information on its distribution, habitat, phenology, conservation status, as well as traits that distinguish it from similar species are provided.