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The genus <i>Metarhizium</i> is one of the most significant entomopathogenic fungi with diverse morphological characteristics and host species. Species of <i>Metarhizium</i> have been widely used for pest control as an environmentally safe alternative to chemical pesticides. This study reports a new species of <i>Metarhizium</i> and a new record of <i>M. bibionidarum</i> from China. The taxonomic positions of the two species within <i>Metarhizium</i> were assessed by morphological and multi-gene phylogenetic data. This assessment confirmed that the new species <i>M. dianzhongense</i> on white grubs (Coleoptera) is a sister to <i>M. ellipsoideum</i> on adult leafhoppers (Hemiptera) and represents a distinctive fungus according to the morphological and phylogenetic evidence. The two species, <i>M. dianzhongense</i> and <i>M. bibionidarum</i>, were described and illustrated. Pathogenicity tests by <i>M. bibionidarum</i> and <i>M. dianzhongense</i> were performed on early instar larvae of the significant agricultural pest <i>Spodoptera frugipera</i> (Lepidoptera). The results demonstrated that both <i>M. bibionidarum</i> and <i>M. dianzhongense</i> exhibit significant insecticidal activity against larvae of <i>S. frugipera</i>, providing new fungal resources for the development of an eco-friendly biocontrol agent against this pest.