ABSTRACT The taxon known as Corydoras paleatus carries one of the most complex taxonomic histories among Corydoradinae catfishes. A comprehensive review of specimens attributed to that species from several localities was carried out, allowing the clear recognition of C. paleatus and also of a new species previously misidentified as C. paleatus , described herein. Corydoras paleatus can be distinguished from its congeners by presenting the following unique combination of features: perpendicularly directed serrations along entire posterior margin of the pectoral spine; three large black blotches along midline of flank; hyaline or black pectoral fin; and transversal black bars on caudal-fin lobes. Corydoras paleatus is known from the lower rio Paraná basin, coastal rivers from Southern Brazil and Uruguay and rio Uruguai basin. The new species can be distinguished from its congeners by having the following unique combination of features: three large black blotches along midline of flank; three nasal pores; mesethmoid short; infraorbital 2 not in contact with compound pterotic; striated black spots from the snout tip to nuchal plate region; markedly rounded snout; and anterior portion of dorsal fin spotted. The new species is known from the upper rio Uruguai basin, from the rivers Canoas, do Peixe and Pelotas.