The labrid fish Cirrhilabrus bathyphilus is described as new from seven specimens collected in the Coral Sea, the holotype from Holmes Reef in the western part of the sea, a paratype from the aquarium trade, and 5 paratypes from 60-217 m from the Chesterfield Bank. This species is distinct in having 15 pectoral rays, 16-17 + 5 lateral-line scales, 5 median predorsal scales, 2 rows of scales on cheek, 14-15 gill rakers, a large eye (8.2-12.1% SL over the range in SL of 35-76 mm), emarginate caudal fin and short pelvic fins in the male, and a color pattern of the male of a very broad longitudinal black band in the outer part of the dorsal fin (absent in middle of fin of largest males), and a submarginal black band in the caudal fin.