Pleurotus shentelii, a new edible mushroom is described based on collections from the cold arid Trans-Himalayan region of Drass (Kargil) of Ladakh, India. It is characterized by white to whitish basidiomata turning brownish with age, elongated to cylindrical basidiospores, fusoid cheilocystidia with acuminate tip, and occurrence on roots and lower stem residues of members of Apiaceae (Prongos pabularia and Ferula jaeschkeana). The species is described, compared and discussed based on morphology and nrITS-based phylogeny.