A revision of Psilochaeta Stein, 1911 and description of Dalcyella, gen. n. (type-species: Helina veniseta Dodge, 1967, from Concepcion, Chile) are provided. These genera are placed in Reinwardtiini, Azeliinae. A new combination for Helina violescens Dodge, 1967 is proposed - Psilochaeta violescens n. comb. Redescriptions of P. chalybea, P. chlorogaster and P. pampeana are presented. The identity of P. chalybea is stabilized. P. carnifex and P. fulvolateralis are unrecognizable. Keys, illustrations and maps of geographical distribution of species are also given.