The cyanolichen genus Epiphloea is currently included within the Heppiaceae (Lichinomycetes) based on ascus characteristics. The presumed presence of a prototunicate ascus has been used as support for this classification, despite the incongruence with other characters (e.g. spores). Here, we use a molecular phylogeny of the two markers mtSSU rDNA and Mcm7 to investigate the position of Epiphloea. In addition, we have re-investigated the ascus characteristics. Our results place the two species, Epiphloea byssina and E. terrena, within the Collemataceae, nested in Leptogium s. str. The ascus type in both species is shown to be Lecanoralean and similar to the ascus in other Collemataceae, with a strongly amyloid tube-like structure. This observation supports the placement within Lecanoromycetes and refutes the earlier suggested affinities with Heppiaceae and Lichinomycetes. The correct names for these species are Leptogium byssinum and Leptogium terrenum.