ABSTRACT: Deep-water hermit crabs of the family Parapaguridae can be abundant (up to 20 kg or 1000 hermit crab individuals per haul) in the trawl bycatch collected during South African demersal abundance research surveys. Until recently, only two parapagurid species had been recognized in the bycatch; Parapagurus bouvieri Stebbing, 1910, and Sympagurus dimorphus (Studer, 1883). Detailed examination of numerous samples of parapagurid specimens from research surveys revealed the existence of a third, undescribed species previously confounded with S. dimorphus, but in fact belonging to a different genus. This new species, Paragiopagurus atkinsonaesp. n. is the 25th in the genus Paragiopagurus Lemaitre, 1996, and has been found only in a small region on the West Coast shelf of South Africa, at depths of 199-277 m. The species is herein fully described and illustrated, including colour images, µCT scans of selected body parts, and CO1 barcode data. The new species is morphologically most similar to P. ventilatus Lemaitre, 2004, a species associated with hydrothermal vents, but differs in armature of the fourth antennal segment (armed with a spine on the dorsolateral distal angle vs. unarmed in P. ventilatus); setation of the antennal flagella (nearly naked vs. with dense setae in P. ventilatus); plumose setation on the third maxillipeds and basal segments of chelipeds (absent vs. present in P. ventilatus); number of rows of scales on the propodal rasp of pereopod 4 (two or three rows vs. one row in P. ventilatus); and degree of telson asymmetry (weakly asymmetrical vs. strongly asymmetrical in P. ventilatus). Paragiopagurus atkinsonaesp. n. is superficially similar to S. dimorphus, with males of the two species showing the same extreme degree of sexual dimorphism on the right cheliped, general light orange colouration, and frequent use of colonial zoanthid carcinoecia for pleonal protection. To aid in future identifications and to facilitate data gathering during surveys, a comparison of P. atkinsonaesp. n. with S. dimorphus is provided, along with descriptions of colouration and photographs of live specimens of all three parapagurid species. Information on taxonomy of the species is summarized, as well as knowledge of their distribution in the demersal research survey regions of South Africa.