Two new species of the damselfly genus Euphaea Selys, 1840 (Odonata: Euphaeidae) are described from the Western Ghats of Satara District, Maharashtra, distinguished by their distinct morphology and coloration. E. thosegharensis Sadasivan & Bhakare sp. nov. is similar to E. cardinalis (Fraser, 1924), but is distinguished by the extensor and flexor surface of all femora black while all femora bright red in E. cardinalis; apical fourth of Hw black while apical half of Hw black in E. cardinalis; genae reddish-orange, black in E. cardinalis; a tuft of sparse stub black hair on either side of tergite of S9 while both S8 and S9 with tufts of long ventral hairs in E. cardinalis. Male genital vesicle matt black, with distal border rounded angles, while vesicle black and hexagonal in shape with rounded angles in E. cardinalis and S9 twice the length of S10, while S9 and S10 of equal length in E. cardinalis. E. pseudodispar Sadasivan & Bhakare sp. nov., is very close to E. dispar (Rambur, 1842), but is differentiated easily by the absence of yellow patch on legs as in E. dispar; only apical fifth of Hw black; genae being yellowish-white, while black in E. dispar; male genital vesicle brownish-black & rhomboid-shaped and with no transverse rugosities while black with distal border rounded and with fine transverse rugosities in E. dispar; penis with single seta on each side while E. dispar has three pairs; sternite of S9 very prominently extending ventrally like a beak in comparison with E. dispar. We have identified additional morphological characters useful in taxonomy of Euphaea of the Western Ghats for example, tufts of ventral hairs on terminal abdominal segments genital vesicle, penile structure of males and sternite of S9 in the males, and vulvar scales of females. A taxonomic key to all known species of genus Euphaea of the Western Ghats is also provided.