The genus Phallotorynus is revised and six species are recognized: P. fasciolatus, P. jucundus, P. victoriae, and three new species from the Paraná-Paraguay drainage, whose descriptions are provided. Phallotorynus dispilos, new species, can be distinguished from its congeners by its color pattern, the presence of sexually dimorphic teeth, and by a series of axial skeleton and gonopodium features. Phallotorynus psittakos, new species, can be autapomorphically diagnosed by a very large lateral process on base of fifth median anal-fin radial of adult males. Phallotorynus psittakos can be distinguished from its congeners by a combination of several characters such as number of dorsal-fin rays, color pattern, number of epipleural ribs, and gonopodial rays. Phallotorynus pankalos, new species, can be distinguished from its congeners, except P. jucundus, by six to nine dark brown round spots along lower half of flanks and by densely pigmented dorsal fin. Phallotorynus pankalos can be distinguished from P. jucundus by the number of dorsal-fin rays, number of anal-fin rays on females, by the absence of a dark ring around border of anus in females, and by the presence of a dark brown band on lower jaw. Diagnoses of intrageneric clades of Phallotorynus and descriptions of distributions for each species are provided, as well as a key for identification.