The New World species of Craspedochaeta Czerny are revised, including the neotropical C. concinna and C. transversa species groups, and the first known New World representative of the C. biseta group (C. argoniae spec. nov. from Ecuador and Bolivia). Eight new species are described from the C. transversa species group and six new species are described from the C. concinna species group. Agonistic behaviour is recorded for the first time in Craspedochaeta, with photographs showing male-male interactions in the Bolivian species C. pullipleura spec. nov. The New World species of Craspedochaeta are predominantly South American in distribution, with only the most abundant and widespread species reaching northward into Central America and the United States; there are, however, several small pockets of endemism in the regions of Costa Rica and Jamaica. Species of Craspedochaeta are recorded for the first time in North America, with C. weemsi spec. nov. found in Florida, C. concinna (Williston) found in Florida and New Mexico, and C. annulipes (Johnson) found in Maryland, Mississippi, North Carolina, and Texas. A phylogenetic hypothesis for the New World species of Craspedochaeta is provided, constructed using external morphology, colouration and male and female genitalic characters (all of which are figured).