Frullania chevalieri (R. M. Schust.) R. M. Schust., previously only known from New Caledonia, is formally reported for the first time for New Zealand. This species represents an important element in the Jubulaceae because it is morphologically allied to a small group of species historically assigned to Schusterella S. Hatt. et al., which has a complicated and controversial taxonomic history. There has been no critical reassessment of Schusterella for over 30 years since the genus was first proposed and this has led to competing contemporary classifications systems. However, chemical and morphological evidence indicates very strongly that Frullania chevalieri and its allies should indeed be retained in the genus Frullania. Frullania chevalieri is described and illustrated in detail and a brief synopsis of morphologically allied species is made; characters associated with the sporophyte and oil-bodies are reported for the first time. The distinguishing features of F. chevalieri and its close morphological allies include the small plant size coupled with the dentate margins of the leaf-lobe.