Pedicularis milosevicii Křivka & Holubec, a new species of lousewort (Orobanchaceae) from the upper Teberda River Basin in the western Russian Caucasus, is described. It mostly occurs on steep slopes in the subalpine zone, and in some features is similar to P. atropurpurea Nordm. and P. condensata M. Bieb. Both species can exceed 1 m in height, with the new species approaching 2 m when in fruit. Pedicularis milosevicii is distinguished from P. atropurpurea by the pale yellow corolla with the upper corolla lip that is red and densely hairy at the apex (vs. the purple and glabrous corolla in P. atropurpurea). The corolla is consistently yellow in P. condensata.