Scottish Ministers refused consent for the Crossburns Windfarm scheme due to concerns over its impact to ecology, the landscape and tourism.
The decision followed a site visit and Public Local Inquiry (PLI) into the plans.
Proposals for the scheme, which had a ground to blade tip height of 115 metres, aimed to develop the project around 4km south west of Aberfeldy.
Conservation charity John Muir Trust (JMT) welcomed the decision. It was among a number of organisations who objected to the application, including Scottish Natural Heritage, Perth & Kinross Council, RSPB and four neighbouring communities covering a vast area of Highland Perthshire.
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Policy Officer, John Low, who attended both the site visit and the PLI, said: "This is the right decision by the Scottish Government. Highland Perthshire is the scenic heart of Scotland and already makes a major contribution to renewable energy targets, through its wind farms and hydro schemes.
"Local communities across Highland Perthshire were rightly concerned that this wind farm could have inflicted serious damage not just to the ecology and landscape of the area, but also to local businesses which rely on year-round tourism.
"The application has consumed a lot of time and money. Hopefully this decision will convince energy companies to seek more suitable locations in the future before they submit speculative applications."
(LM)
