Babinskaiidae is an extinct family of the lacewing superfamily Myrmeleontoidea, currently only recorded from the Cretaceous. The phylogenetic position of this family is elusive, with inconsistent inferences in previous studies. Here we report on three new genera and species of Babinskaiidae from the mid-Cretaceous Kachin amber of Myanmar, namely Calobabinskaia xiai gen. et sp. nov., Stenobabinskaia punctata gen. et sp. nov., and Xiaobabinskaia lepidotricha gen. et sp. nov. These new babinskaiids are featured by having specialized characters, such as the rich number of presectoral crossveins and the presence of scaly setae on forewing costal vein, which have not yet been found in this family. The exquisite preservation of the Kachin amber babinskaiids facilitate a reappraisal of the phylogenetic placement of this family based on adult morphological characters. Our result from the phylogenetic inference combining the data from fossil and extant myrmeleontoids recovered a monophyletic clade composed of Babinskaiidae and another extinct family Cratosmylidae, and further assigned this clade to be sister group to a clade including Nemopteridae, Palaeoleontidae, and Myrmeleontidae. Babinskaiidae appears to be a transitional lineage between Nymphidae and advanced myrmeleontoids, with ancient morphological diversification.