Classification of the family Ptilodactylidae is reviewed. A new ptilodactylid subfamily, Byrrocryptinae subf. nov., is proposed for the genus Byrrocryptus Broun and detailed redescription is provided for Byrrocryptus variegatus (Carter). Summary of Ptilodactylidae biology and description of the larvae of Byrrocryptus are included. Two new Australian species Ptilodactyla escalonai sp. nov., and Pherocladus monteithi sp. nov. from Northern Queensland are described. A key is provided to adults of Australian ptilodactylid genera. Former subfamily Cladotominae, including Austrolichas Lawrence & Stribling, is removed from Ptilodactylidae and regarded as a separate family Cladotomidae Pic, 1914.