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We describe the newly-discovered species Illicium gansuense (Schisandraceae), discovered in the Yuhe area of Giant Panda National Park, Gansu, China. Morphologically, I. gansuense resembles I. ternstroemioides and I. arborescens. However, the new species can be distinguished by its smaller leaf size, the larger number of tepals, tepal margin ciliate, and distinct flowering and fruiting seasons.