Entonaema is a peculiar and morphologically easily recognised fungal genus with disjunct and predominantly tropical-subtropical distribution. Entonaema cinnabarinum is typified on material from Australia and is the sole known species in Europe. It was first reported on this continent three decades ago, based on a collection from Bulgaria and remains so far one of the utmost rare European fungi with merely five sites known on the continent. After diligent search, the Bulgarian Entonaema was rediscovered in the area where it was first collected, and new sites were also found. Two ITS rDNA sequences of Bulgarian collections were obtained, appearing to be the first verified accessions of European origin. In the phylogenetic inference they appear closely related to an accession from South Korea, dubbed E. splendens. The outcomes of the phylogenetic analysis confirm the self-standing status of Entonaema, but its precise affiliation within the order Xylariales remains to be assessed further. Morphological characterisation, ample macroscopic and microscopic illustrations, as well as SEM images of ascospores of the new Bulgarian findings are included.