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The genus Thecotheus is reported in Australia for the first time. A new species, Thecotheus urinamans is described and illustrated and included in a key to all known species of the genus. Critical macro- and micromorphological comparisons are presented to distinguish the new species from several closely related species, particularly the widespread fungus Thecotheus crustaceus. Thecotheus urinamans was growing on rotting, moist, plant litter from an experimental plot treated with urea (ammonia) in the indigenous jarrah (Eucalyptus marginata) forest of Western Australia. [ABSTRACT FROM AUTHOR]