Wood-inhabiting fungi are found in living trees, decorticated wood of dead tree branches and trunks as well as manufactured wood products, and play an important role in forest ecosystems as an important group of decomposers. In this present study, two new wood-inhabiting fungal taxa, Candelabrochaete yunnanensis and Hyphodermella sinensis are proposed based on a combination of the morphological features and molecular evidence. Candelabrochaete yunnanensis is characterized by the farinaceous basidiomata with the flesh-pinkish to brownish vinaceous hymenial surface, a monomitic hyphal system with simple-septate generative hyphae, presence of the cylindrical septocystidia and ellipsoid basidiospores (4–5 × 2.5–3 µm). Hyphodermella sinensis is characterized by the membranaceous basidiomata having the white to slightly greyish hymenial surface, a monomitic hyphal system with clamp generative hyphae, presence of the clavate cystidia and ellipsoid basidiospores (4–6 × 3–4 µm). The phylogenetic tree inferred from ITS+nLSU sequences revealed that Candelabrochaete yunnanensis was nested into the family Irpicaceae within the order Polyporales, in which it was closely related to the species C. africana; Hyphodermella sinensis grouped into the genus Hyphodermella and clustered into the family Phanerochaetaceae, in which it grouped with H. aurantiaca and H. zixishanensis.