Sarcodon imbricatus has long been used to extract blue and greenish pigments for wool dyeing. We found that fruit bodies growing with Pinus sylvestris seemed to be superior for dyeing compared to fruit bodies growing with Picea abies, and macroscopical differences between the forms indicated that they are different taxa. By studying sequences of rDNA ITS and macroscopical characters, two species were recognized. Sarcodon imbricatus grows in association with Picea, and S. squamosus with Pinus. The latter species, described by Schaeffer in 1774, has been lumped with S. imbricatus during the past 50 years, creating great confusion among wool dyers.