A new species of Artemisia (Asteraceae: Antemideae) from Xizang, China, A. baxoiensis, is described, illustrated and discussed based on morphological, micromorphological and molecular phylogenetic evidence. It grows in Nu Jiang dry-hot valley and is narrowly distributed. This plant is similar to Neopallasia pectinata, but different in capitula and indumentum. Artemisia baxoiensis has distinctive morphology with pectinately pinnatisect leaf blade and unusually dense glandular hairs.