Helichrysum italicum is a widely distributed species in the Mediterranean Basin, which has received controversial taxonomic treatments at infraspecific level owing to its morphological variability. In this paper we perform a detailed multivariate analysis of morphological characters using an exhaustive sampling of H. italicum. Integrating previously published molecular, chorological and newly obtained morphological data, a revised taxonomic treatment for the whole H. italicum is provided. On the one hand, the results obtained suggest that the Majorcan mountain populations of H. italicum subsp. microphyllum need to be considered an independent species, newly described here as Helichrysum massanellanum. On the other hand, H. italicum subspecies are recircumscribed. A new combination is proposed, H. italicum subsp. tyrrhenicum, a taxon that comprises populations from Corsica, Sardinia, Majorca coastline and Dragonera islet, whereas subsp. microphyllum is restricted to the island of Crete. With those substantial classification modifications, a complete new taxonomic treatment is presented for this group, including an identification key, synonyms, morphological descriptions, distribution areas and habitat characterization.