A new species of an extinct dolphin belonging to the kentriodontids, i.e., Kentriodon sugawarai sp. nov., is described from the upper lower to lowest middle Miocene Kadonosawa Formation in Ninohe City, Iwate Prefecture, northern Japan. The holotype of Kentriodon sugawarai sp. nov., consists of a partial skull with ear bones, mandibular fragments, and some postcranial bones. This new species shares five unique characters with other species of Kentriodon. In addition, the new species differs from other species of the genus in displaying a narrow width of the squamosal lateral to the exoccipital in posterior view, the dorsolateral edge of the opening of the ventral infraorbital foramen that is formed by the maxilla and the lacrimal or the jugal, and at least three anterior dorsal infraorbital foramina. Our phylogenetic analysis based on 393 characters for 103 Odontoceti taxa yielded a consensus tree showing all previously identified kentriodontids as a monophyletic group that comprises the sister group of the crown Dephinoidea, which in turn include Delphinidae, Phocoenidae and Monodontidae. Our analysis also indicates that the distinct innovation of the acoustic apparatus (i.e., 13 out of 29 derived characters are from tympanoperiotic) would have occurred in the ancestral lineage of the Delphinoidea (sensu lato) including the monophyletic Kentriodontidae during their initial evolution and diversification.