A systematic revision of the species of Palpibracus Rondani, 1864 from South America is presented. This genus was formerly placed in Phaoniini but through the study of the chaetotaxy and the new characters or with reinterpretation of those already known, is here proposed its transferrence to Azeliinae, Reinwardtiini. Some remarks on this new systematic position are analysed. The following species are redescribed: P. apicalis, P. chilensis, P. confusus, P. fasciculatus, P. lancifer, P. nigriventris, P. pilosus, P. reynoldsi, P. separatus. P. similis, P. spicatus, P. trivittatus, P. univittatus and P. veneris. Palpibracus albuquerquei sp. n., from Angol, Chile, is described. A new combination for Phaonia peruviana Malloch, 1929 is proposed - Palpibracus peruvianus nov. comb. - and Darwinomyia angolensis Malloch, 1934 is considered as a new synonym. A key and maps of geographical distribution of the species are given.