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A new species of Diplodiscus is described and illustrated from one collection made in lowland mixed dipterocarp forest in Sabah, Malaysia. Conspicuous by its twig colour, leaf shape and indumentum, it is probably allied to D. longifolius, but differs in sufficient characters (shape, indumentum, apex and venation of blade, flower bud shape and size, petal diameter, ovary shape and fruit shape and size) to be a species in its own right. A key to the species of Diplodiscus in Malaysia also is provided.