Bupleurum dracaenoides, a new woody species endemic to southwestern China, is described and illustrated. This new species differs markedly in morphology from previously known congeneric species. It is characterized by its shrubby habit, with woody stems up to 1 m tall. The leaves are clustered at the top of the woody stems, the involucral bracts are ovate and unequal, the bracteoles are usually ovate or suborbicular and the pedicels of the mature fruits exceed the bracteoles. Molecular phylogenetic analyses indicated that Bupleurum dracaenoides belongs to a small subclade of subgenus Bupleurum and is sister to Bupleurum polyclonum. Relationships to other woody species of Bupleurum are discussed.