A new species of callianassid mud shrimp is described from outer continental shelf waters of the northwestern Gulf of Mexico, where it appears to commonly live in close association with sediments on or near natural hydrocarbon seeps. Recent genus-level taxonomic revisions of the Callianassidae, based on gene sequence analyses and comparative morphological studies, included specimens representing this new species, assigning it with strong support to the genus Pugnatrypaea Poore et al., 2019. The other known species of this genus are also typically found in offshore waters of continental shelves, but are all restricted in distribution to the Indo-West Pacific and are known from relatively few specimens. Collections of this new Gulf of Mexico representative of the genus are all from slightly deeper waters than for other known congeners, and commonly occur near hydrocarbon seeps, on some occasions being directly associated with sulfidic substrates that include waxy crude oil globules.