Iochroma baumii S. D. Sm. & S. Leiva (Solanaceae) is described from the cloud forests of Napo in northern Ecuador. We provide a summary of the phylogenetic relationships and recent taxonomic changes in Iochroma Benth. and related genera and discuss the phylogenetic placement of this newest species. Iochroma baumii shares its geographic distribution and many floral features with its closest relatives I. calycinum Benth., I. fuchsioides (Bonpl.) Miers, and I. gesnerioides (Kunth) Miers, but its deep blue flowers with involute corolla lobes, which appear in clusters along older branches, make it easily distinguishable from its congeners.