Two new genera, Neophaeosphaeria and Phaeosphaeriopsis, are described to accommodate species of Paraphaeosphaeria that are not congeneric based on morphological characters and results of 18S rDNA sequence analyses. Paraphaeosphaeria s. str. is restricted to species with two-septate ascospores and anamorphs that produce non-septate, smooth, pale brown conidia enteroblastically from phialides which have some periclinal thickening. Species in Neophaeosphaeria have 3–4-septate ascospores and anamorphs that produce ovoid to ellipsoid, non-septate, brown, verrucose or punctate conidia from percurrently proliferating conidiogenous cells. Paraphaeosphaeria barrii, P. conglomerata, P. filamentosa and P. quadriseptata are transferred to Neophaeosphaeria. At present all species in Neophaeosphaeria occur on Yucca (Agavaceae). Phaeosphaeriopsis is described for species that produce 4–5-septate ascospores. Known anamorphs produce cylindrical, 0–3-septate, brown, punctate conidia from percurrently proliferating conidiogenous cells or bacillar conidia from simple phialides. P. agavensis, P. glauco-punctata, P. nolinae and P. obtusispora are transferred to Phaeosphaeriopsis. P. amblyspora is described as a new species.