Fusarium is one of the most diverse fungal genera affecting several crops around the world. This study describes the phylogeny of Fusarium species associated with grains of sorghum and finger millet from different parts of Ethiopia. Forty-two sorghum and 34 finger millet grain samples were mycologically analysed. All of the sorghum and more than 40% of the finger millet grain samples were contaminated by the Fusarium species. The Fusarium load was higher in sorghum grains than that in finger millet grains. In addition, 67 test isolates were phylogenetically analysed using EF-1α and β-tubulin gene primers. Results revealed the presence of eight phylogenetic placements within the genus Fusarium, where 22 of the isolates showed a close phylogenetic relation to the F. incarnatum–equiseti species complex. Nevertheless, they possess a distinct shape of apical cells of macroconidia, justifying the presence of new species within the Fusarium genus. The new species was the most dominant, represented by 33% of the test isolates. The current work can be seen as an important addition to the knowledge of the biodiversity of fungal species that exists within the Fusarium genus. It also reports a previously unknown Fusarium species that needs to be investigated further for toxin production potential.