Psilocybe fagicola comprises a complex of more than eight species, six of them in Mexico, and all of them possessing a long pseudorhiza, a characteristic not listed by Heim and Cailleux in 1959 in the original description of the type species, but described by Guzman in 1978 and 1983. The description of Psilocybe fagicola s.s. is here emended to include the length of the cheilocystidia of(6-) 12-20 (-30) llm, as well as the absence or scarcity of pleurocystidia. Psilocybe xalapensis and P. wassoniorum are considered to be synonymous with P. fagicola s.s. However, Psilocybe banderillensis and P. herrerae from Mexico, P. columbiana from Colombia, and P. keralensis from India are considered to be valid species within this complex. Moreover, P. novoxalapensis and P. teofilae, both from Mexico, are described as new species. Length of spores, presence or absence of pleurocystidia and their variations, and type of cheilocystidia constitute the principal defining characteristics of the species. Setaceous hyphae at the base of the stipe, as well as caulocystidia, lack taxonomic value, as do other morphological characteristics, including pileipellis and subpileipellis. A key to the eight considered species is also presented within the paper.