Hygrohypnum subeugyrium was first reported for Britain in 1976, but it has been ignored in subsequent British floras and identification guides. Morphologically it is a distinct species. New localities were discovered during a meeting of the British Bryological Society in Scotland in 2017. A subsequent revision of herbarium material has shown that H. subeugyrium is widely distributed in Scotland and occurs southwards to a few localities in England and Wales. Its extra-European distribution is extended to include the Himalayan region (Sikkim and Yunnan). It is described and illustrated, and its diagnostic characters are discussed.