Phaeoannellomyces McGinnis et Schell gen. nov., which is based upon P. elegans McGinnis et Schell sp. nov., is proposed for dematiaceous yeasts which produce percurrently proliferating conidiogenous cells. Cladosporium werneckii Horta is transferred to Phaeoannellomyces as P. werneckii (Horta) McGinnis et Schell comb. nov. because the most stable and distinctive synanamorph produced by this fungus consists of annellidic yeast cells. The Phaeococcomycetaceae McGinnis et Schell fam. nov. is proposed in the class Blastomycetes, division Fungi Imperfecti for the dematiaceous yeast genera Phaeoannellomyces and Phaeococcomyces de Hoog.