The South American genus Phantasca Redtenbacher, 1906 (Phasmatodea: Diapheromeridae: Diapheromaerinae) is re-diagnosed and revised at the species level. The precedingly unknown eggs are described for the first time. The genus Pterolibethra Günther, 1940 (type species: P. heteronemia Günther, 1940) is re-synonymised, with Phantasca (syn. nov.) and consequently the two species originally contained, P. heteronemia Günther, 1940 and P. poeciloptera Günther, 1940, are transferred to Phantasca (comb. rev.). P. laeta Conle, Hennemann & Gutierréz, 2011 is not congeneric and is transferred to the genus Jeremiodes Hennemann & Conle, 2007 (Cladomorphinae: Cladomorphini; comb. nov.). Two species are removed from Bacteria Berthold, 1827 and transferred to Phantasca; these are B. quadrilobata Chopard, 1911 and B. montana Redtenbacher, 1906 (comb. nov.). Six new species are described: P. adiposa sp. nov., P. amabile sp. nov., P. femorata sp. nov., P. guianensis sp. nov., P. nigrolineata sp. nov. and P. ruboligata sp. nov. The male and egg of P. quadrilobata (Chopard, 1911) are described and illustrated for the first time. The genus now contains 13 species that are distributed throughout the northern half of South America. A key as well as detailed descriptions and illustrations are presented for all known species.