Two new species, Lyophyllum yiqunyang and L. heimogu, that belong to the section Difformia of the genus Lyophyllum, are described based on collections from Tibetan areas, China. The two species are delicious edible low-temperature mushrooms and are widely collected and eaten by local people. Lyophyllum yiqunyang sp. nov. is saprotrophic and has medium-sized basidiomata, olive-grey pileus, cheilocystidia, absent pleurocystidia, globose to subglobose basidiospores (6.12–6.31 × 6.02–6.23 μm) and clamp connections at the pileus context, hymenophoral trama and stipe. Lyophyllum heimogu sp. nov. is saprotrophic and has a dark grey to olive pileus, medium-sized basidiomata and globose to subglobose basidiospores (5.31–5.63 × 5.22–5.41 μm). In the phylogenetic analyses, our two new species formed distinct clades that are well supported by posterior probabilities and bootstrap proportions. Detailed descriptions, colour photos, illustrations and a phylogenetic tree to show the positions of the two new species are presented.