Endophytes of several South American grasses were examined. The taxonomic s
tatus of endophytes in Festuca argentina, F. hieronymi, Poa huecu, and an u
nidentified species of Poa is evaluated. On the basis of morphological feat
ures, and rDNA and protease gene sequence data, it is proposed that this en
dophyte is different from several other endophytes examined from North Amer
ican, South American, and European species of Festuca and Pen. These endoph
ytes, believed responsible for causing the 'tembladera' or 'huecu' toxicosi
s in animals, have also been reported to produce unique toxins. Isozyme ana
lysis supports the distinctness of these endophytes but also demonstrates v
ariability in populations with respect to gene polymorphisms. Taking all th
e data into consideration, we propose to establish a new endophyte species
Neotyphodium tembladerae which includes endophytes found in multiple grass
species. We suggest the use of a phylogenetic species concept to define spe
cies of Neotyphodium.