The taxonomic status of Phlomoides sect. Thyrsiflorae in Flora Iranica is reviewed. A new species of this section is reported for the first time from the dry-stony zone in a mountainous region in Kerman Province of Iran, at an elevation of 2250 m, far disjunct (c.700 km) from the Phlomoides thyrsiflora in Afghanistan. This new species is described and illustrated as Phlomoides kermanica. On the basis of data on morphology, ecology and chorology, the new species is reported and its affinities and differences with regard to close species are discussed. Phlomoides sect. Thyrsiflorae is recorded for the first time from Iran. In addition, a key to all species of this section is presented.