The systematic position of the enigmatic Asiatic liverwort Metzgeriopsis pusilla (Marchantiophyta), the single thalloid member of the largest family of leafy liverworts, Lejeuneaceae, was investigated based on sequences of the rbc L gene and the trn L-F region of chloroplast DNA, and morphology. Metzgeriopsis is not phylogenetically isolated from other taxa of Lejeuneaceae, as previously suggested, but is nested within Cololejeunea . The two genera share many morphological features, especially in the sporophyte generation, which is newly described. Metzgeriopsis and Cololejeunea are members of the Tuyamaella -Cololejeunea clade, characterized by neotenic features that probably evolved as adaptations to ephemeral habitats in tropical rain forests. Three different types of neoteny occur in this clade, which apparently originated by multiple heterochronic events. Within Lejeuneaceae, protonemal neoteny is unique to Metzgeriopsis and apparently resulted by evolution from a primary neotenic ancestor. The occurrence of protonemal neoteny in bryophytes is briefly reviewed and two types are recognized: species having a persistent thalloid protonema and species having a persistent filamentous protonema. The thalloid type is very rare and exclusive to epiphyllous liverworts, whereas the filamentous type is much more common and is characteristic of many terrestrial bryophytes, including the rare genus Protocephalozia . The new combination Cololejeunea metzgeriopsis (K.I.Goebel) comb. nov. is proposed.