A new species of Virola (Myristicaceae) from Amazonian terra firme forests is described and illustrated. Virola williamii has been confused with V. elongata and belongs to a group of species with reported hallucinogenic use. The new species is characterized morphologically by small, elliptical leaves that are abaxially glaucous and sparsely puberulent with stellate-sessile trichomes, but soon glabrescent; fruits that are sparsely puberulent with sessile-stellate trichomes but glabrescent; and fresh branchlets having a guava-like odor. We discuss relationship of the new species with morphologically similar and likely closely related species, and provide a line drawing and photographic illustrations of the species, a distribution map, and comments on its ecology, uses, and conservation status.