A new species belonging to Masdevallia section Racemosae is described from South-Western Colombia. It is very similar to Masdevallia racemosa, the only other member of the section, with which it shares the characteristic repent habit, loose multi-flowered inflorescence, and striking red-orange flowers. However, Masdevallia mirandae can be distinguished by the adaxially hispid sepals and the elliptic petals with a rounded apex. The new species is restricted to The Farallones de Cali National Natural Park and its populations are threatened by illegal mining activities.