The genus Pseudostegania Butler is revised. In addition to the two species known, four species are described as new: P. lijiangensis sp. nov. from Yunnan Province, P. qinlingensis sp. nov. from Gansu and Shaanxi Provinces, P. zhoui sp. nov. from Sichuan Province (China) and P. burmaensis sp. nov. from Burma (Myanmar); two species are newly combined with Pseudostegania: P. distinctaria (Leech, 1897), comb. nov. and P. yargongaria (Oberthür, 1916), comb. nov. All the known species are redescribed and lectotypes are designated for P. defectata (Christoph, 1881), P. distinctaria and P. yargongaria. The generic characters, based on all species, are summarized. The tribal placement of Pseudostegania is discussed. Illustrations of moths and genitalia are presented.