The proteocephalidean cestode Kapsulotaenia sandgroundi (Carter, 1943) (Proteocephalidae: Acanthotaeniinae), the type-species of Kapsulotaenia Freze, 1963, is redescribed on the basis of the type-material from Varanus komodoensis Ouwens on Komodo Island, Indonesia, and material from museum collections. The ovary is larger than described by Freze (1965) and occupies 42-59% and not 33% of the proglottis width as cited by Freze. The presence of a small vaginal sphincter and a seminal receptacle are also new observations in all specimens. The microtriches, cross-sections and eggs are figured for the first time. In addition, the ventral osmoregulatory canals are connected to the ventral surface by narrow secondary ducts; the median part of the cirrus-sac is narrower than the distal and proximal regions. Egg clusters and a supplementary layer in the eggs situated between the oncosphere and the bi-layered embryophore, present in K. sandgroundi, are features also observed in the majority of Australian proteocephalideans. It is concluded that much more attention needs to be paid to the careful observation and description of the morphology of the eggs in the Proteocephalidea, as this may represent a valuable discriminatory character for distinguishing species.