Abstract Palapedia schubarti n. sp. is the third species of the genus Palapedia, described from the northwestern Indian Ocean. Two species, P. persica and P. apeli, had already been recorded from the Persian Gulf, and the new species is described from farther south in Socotra Island. Palapedia persica has appendages markedly ornamented with large denticles, while P. apeli has distinctly smooth appendages. Compared to the two above-mentioned species, the new species has an intermediate position regarding the spination, with small denticles on the upper margin of the palm, fingers and anterior margin of walking legs. The morphology of the first male gonopod of P. schubarti n. sp. is very close to P. rastripes, described from Ceylon, and P. truncatifrons described from Japan. The new species, however, is easily distinguishable from those two congeners in having a spade form ending and several other characteristics of chelipeds and carapace.