After examining topotypic specimens of Euterpnosia varicolor Kato, I found that a new species is misidentified and described as E. varicolor in the most recent review of Cicadidae from Taiwan. I herein redescribed E. varicolor basing on topotypic specimens and also described the new species, E. alpina, and another allied new species, E. madawdawensis, from Taiwan. The membranous vesica and sclerotized projections on the apical part of aedeagus were described and proven to be reliable for identifying these three species. I also analyzed and characterized the distinct calling song of each species. After the taxonomic problems of E. varicolor were discussed, a neotype of E. varicolor was designated from topotypic specimens to prevent further confusion and misidentification.