A new species, Marasmius pseudojasminodorus, belonging to the Marasmius section Sicci is described from the lateritic region of West Bengal, India, based on DNA barcoding of the nrITS region with supportive macro-microscopical data. The novel taxon is characterized by a small to medium-sized striate pileus with a rugulose surface colored brown orange to copper red, white-colored subdistant lamellae, a non-institious stipe with white basal mycelia, the presence of a jasmine-like odor, a white spore print, fusiform basidiospores (9.7–13.3 × 2.7–5.0 μm), Siccus-type cheilocystidia, absence of pleurocystidia, the presence of two types of caulocystidia (Siccus-type and non-setulose), and the hymeniform pileipellis consisting of Siccus-type broom cells. A detailed morpho-molecular description and field photographs, along with a comparison to closely related taxa, are provided.