A taxonomic revision of the genus Liparia (Fabaceae, tribe Liparieae) is presented. Liparia is endemic to the Cape fynbos region of South Africa and comprises 20 species. Morphological, cytological and chemical characters in the genus are briefly discussed. A cladistic analysis of 13 morphological characters produced a single partially resolved cladogram, with two distinct main clades. In the taxonomic treatment these two groups are accorded sectional status. One species is described as new, viz.: L. racemosa. Two identification keys are provided, one for use in the herbarium and one for use in the field. Full descriptions, diagnostic characters, illustrations and distribution maps of the species are given.