This study describes a new species of the genus Liotia discovered in Bahia Inglesa, northern Chile, on 8 August 2007. Liotia chilensis sp. nov. is characterized by a planispiral shell which is thick, small, umbilicated and white. The external sculpture of L. chilensis sp. nov. has well-defined conspicuous primary axial cords which clearly differentiate it from the sympatric species L. cancellata, the only species of this genus described up to now in Chile. As additional diagnostic character of L. chilensis sp. nov. is a shell aperture with a smooth border that has a slight triangular prolongation towards the columella, which gives a quadrangular form to the aperture. Shells of L. chilensis sp. nov. were found on sandy substrate between 15 and 32 m depth.