A second orchid species, Nematoceras sulcatum M.A.Clem. et D.L.Jones, has been found on subantarctic Macquarie Island. A history of its discovery and recognition is provided. The morphology, biology and ecology of the new species are compared with N. dienemum (D.L.Jones) D.L.Jones, M.A.Clem. et Molloy, the other species of orchid on Macquarie Island. Molecular studies based on the internal transcribed spacer (ITS) region of nuclear ribosomal DNA reveal the phylogenetic relationship of the two Macquarie Island species compared to others in the genus from New Zealand and its Southern Ocean islands.