The genus Paralaea Guest is reviewed and includes four previously described species, P. porphyrinaria (Guenee, 1857), P. beggaria (Guenee, 1857), P. ochrosoma (R. Felder & Rogenhofer, 1875) and P. polysticha (Goldfinch, 1944), and nine new species: P. atralba, sp. nov., P. chionopasta, sp. nov., P. jarrah, sp. nov., P. karri, sp. nov., P. maranoa, sp. nov., P. sarcodes, sp. nov., P. taggorum, sp. nov., P. tasmanica, sp. nov. and P. toowoomba, sp. nov. The genus has a Bassian distribution with some extension into the woodlands of the semi-arid zone. Most species occur in south-eastern Australia with six species in Tasmania. Known larvae feed on Eucalyptus, especially trees of the subgenus Monocalyptus, and one species is an occasional forest pest.