To elucidate phylogenetic relationships of Phellinus and its related genera, nuclear internal transcribed spacer and mitochondrial small subunit ribosomal DNA sequences from 65 strains were determined and compared. The combined dataset of two sequences increased informative characters and led to the production of trees with higher levels of resolution. Phylogenetic analysis of the combined dataset revealed thirteen evolutionary lineages and several unresolved species that were together subdivided into two large clusters consisting of oligonucleate species and binucleate species. These results coincided with previous cytological, morphological, and molecular studies. It is newly recognized that the Phellinus linteus complex forms a sister clade to Inonotus, and that Fulvifomes is somehow related to Inocutis. The Phellinus linteus complex of dimitic perennial taxa made an independent clade from Inonotus and suggested that hyphal miticity and fruitbody permanence had enough phylogenetic significance to keep the complex within the traditional genus Phellinus. Taxa lacking setae were clustered into Fulvifomes, Phylloporia, Inocutis, and Fomitiporia, and the first three were closely related sister groups, but Fomitiporia was a genus distantly related to them. Several taxa with branched setae were shown among distantly related genera. Molecular evidence indicated that the ancestral nuclear type could be a binucleate feature, and that there might be parallel gains of branched setae and parallel losses of setae in the Hymenochaetales.