A new subgenus, Walaphyllium subgen. nov., is described within Phyllium Illiger, 1798 to accommodate three leaf insect species. One of the species included is newly described herein as Phyllium ( Walaphyllium) lelantos sp. nov. from Papua New Guinea. This new subgenus of Phyllium can be diagnosed by a following combination of features. This new species is compared to the two additional new subgenus members, Phyllium zomproi Größer, 2001 and Phyllium monteithi Brock & Hasenpusch, 2003. Also for the first time the male morphology of Phyllium zomproi is described and illustrated. To conclude, a brief biogeographical view of the leaf insects on either side of the Torres Strait is presented, as well as a key to species and a distribution map to the known species of Phyllium ( Walaphyllium) subgen. nov.