A re-description of the freshwater, Early Cretaceous osteoglossomorph Laeliichthys ancestralis Santos, 1985, from the Sanfranciscana Basin of Brazil, is provided. New anatomical details and a revised diagnosis, as well as a new phylogeny are presented. A phylogenetic analysis places this taxon within the Osteoglossomorpha most likely as a member of the Notopteroidei. Within this clade Laeliichthys is the sister-taxon of the Notopteridae. The subfamily Laeliichthyinae is elevated to family rank. The revised phylogenetic position revealed in this study has important consequences on the biogeography of Notopteroidei as it extends their distribution to western Gondwana, prior to the separation of South America and Africa, and extends the evolutionary origins of notopteroid lineages by at least ~27 Myr before their first appearance in the fossil record.