Oxalis wulingensis T. Deng, D. G. Zhang & Z. L. Nie, an unusual new species of Oxalidaceae from Hunan and Hubei provinces of central China, is described and illustrated. Placement of this species within Oxalis was assessed based on DNA sequence-based analyses of the nuclear internal transcribed spacer (ITS) region and morphological comparisons with related species. This new species can be easily distinguished from all its congeners by having long obtriangular, two lateral leaflets arranged at a 180° angle and densely pubescent with brown villous hairs on both surfaces, pink flowers with lilac veins, and apex of petals obtuse or 3-5 irregularly denticulate. The chromosome number of the species is 2n = 22. With the addition of O. wulingensis, which is the only species endemic to China, a total of seven native species of Oxalis occur in the country. We herein provide a taxonomic key to all Chinese species of Oxalis.