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<i>Selaginella iridescens</i> (Selaginellaceae), a new species of spikemoss from Hainan Island, China, is described based on morphological and molecular evidence. The new species morphologically resembles <i>S. pseudotamariscina</i> from Vietnam which was recently recognized and segregated from <i>S. tamariscina</i> and <i>S. pulvinata</i>. Some characters of <i>S. iridescens</i>, including the iridescent leaves and long arista (0.35–1.20 mm long), the widely membranaceous margin of axillary leaves (ca. 2/3), dorsal leaves sulcate extending to the top, and slender main stem, dorsoventrally prostrate, distinguish it from <i>S. pseudotamariscina</i>. Phylogenetic results based on <i>rbcL</i> of 28 <i>Selaginella</i> species indicate that <i>S. iridescens</i> is sister to <i>S. pseudotamariscina</i>, and distant from the <i>S. tamariscina</i>-<i>S.</i><i>pulvinata</i> clade. The ancestral character reconstruction result reveals that the rosette is apomorphic and has evolved independently at least six times in <i>Selaginella</i>.