A new species of the grass genus Eragrostis Wolf, E. nilgiriensis C. P. Vivek, G. V. S. Murthy & V. J. Nair sp. nov. from Nilgiri district, Tamil Nadu, India is described and illustrated. The species is allied to E. barrelieri, but differs from it mainly by the primary panicle branches not spiculate up to base, leaves not glaucous, lemma shorter and acute and by a much smaller caryopsis. The new species is morphologically similar also to E. minor and E. nigra. A table listing differences between these species is provided.