The proteocephalidean cestode Kapsulotaenia chisholmae n. sp. (Proteocephalidae: Acanthotaeniinae) is described from the intestine of the monitor lizard Varamis spenceri Lucas & Frost, 1903 (Reptilia: Varanidae) in Australia. Kapsulotaenia chisholmae n. sp. is compared with its five recognized congeners. The new species differs from K. sandgroimdi (Carter, 1943), K. varia (Beddard, 1913) and K. tidswelli (Johnston, 1909) by the anterior position of the vagina to the cirrus-sac. It also differs from K. varia, K.frezei Schmidt & Kuntz, 1974 and K. saccifera (Ratz, 1900) by a different egg number in each clusters (8-13 in K. chisholmae versus 12-20, 90-100 and more than 100, respectively), from K. frezei and K. saccifera by a different cluster shape (spherical to oval versus banana-shaped in the latter two species), from K. sandgroimdi and K. tidswelli by a greater diameter of the embryophore (37-45 μim versus 25-30 μim and 19-32 μxm, respectively); from K. sandgroimdi and K. varia (sensu Nybelin, 1917), by the absence of a vaginal sphincter. Finally, K. chisholmae differs from K. varia, K. tidswelli, K.frezei and K. saccifera by a larger size (length of the strobila up to 315 mm versus 30 mm, 27-30 mm, 40 mm, and 10-40 mm, respectively). We consider K. saccifera to be a species inquirenda due to its very poor description (no illustration, nor description of the scolex, number of testes, cirrus-sac ratio, testis field, uterine branches number, etc.). Specimens redescribed by Nybelin (1917) as AT. varia (Beddard, 1913) are considered to be another, yet unnamed species of Kapsulotaenia.