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The genus <i>Purpureocillium</i> is renowned for its role in biocontrol and biotechnological applications. The identification of new species within this genus is crucial for broadening our understanding of its ecological roles and potential utility in sustainable agriculture. This study aimed to characterize a new species of <i>Purpureocillium</i>, isolated from soil in eastern China, and to evaluate its bioactivity against <i>Ostrinia furnacalis</i> (corn moth) and <i>Galleria mellonella</i> (greater wax moth). We utilized morphological characterization; molecular phylogenetic analysis employing ITS, <i>nrLSU</i>, and <i>tef1</i> genes; and bioactivity assays to identify and characterize the new species. The newly identified species, <i>Purpureocillium jiangxiense</i> sp. nov., displays unique morphological and genetic profiles compared to known species. Bioactivity tests showed that this species exhibits inhibitory effects against <i>O. furnacalis</i> and <i>G. mellonella</i>, highlighting its potential in biocontrol applications. By the ninth day at a spore concentration of 1 × 10⁸ spores/mL, the mortality rate of the corn moth and greater wax moth reached 30% to 50% respectively. The discovery of <i>P. jiangxiense</i> sp. nov. adds to the genetic diversity known within this genus and offers a promising candidate for the development of natural biocontrol agents. It underscores the importance of continued biodiversity exploration and the potential for natural solutions in pest and disease management.