The Persian Gulf and Oman Sea are characterized by an interesting paleoclimatic history and different ecological settings, and offer a unique study area to investigate the genetic structure of marine organisms including fishes. The Ornate goby Istigobius ornatus is widely distributed throughout the tropical Indo‐West Pacific including the Persian Gulf and Oman Sea. Here, we present the population structure, genetic diversity, and demographic history of four populations of I. ornatus from the latter two regions using the D‐loop marker of mitochondrial DNA. The results reveal a shallow genealogy, a star‐like haplotype network, significance of neutrality tests, and unimodal mismatch distribution. This is concordant with a recent demographic expansion of I. ornatus in the Persian Gulf and Oman Sea at about 63,000–14,000 years ago, which appears to be related to Late Pleistocene sea level fall and rise. The results of the pairwise Fst estimates imply high gene flow along the coast of the Persian Gulf, which is probably due to larval dispersion, whereas the Oman Sea population clearly differs from all Persian Gulf populations. The AMOVA result indicates that 7.74% of the variation is related to differences among ecoregions, while inter‐ and intra‐population differences explained −3.20% and 95.47% of the variation, respectively. The haplotype network depicts two groups of haplotypes, most of them were specific to the Persian Gulf. No further evidence for geographic lineage substructuring was evident. The Mantel test result indicates that isolation by distance is not the main mechanism that promoted the genetic differentiation among the studied populations of I. ornatus. We suggest that cumulative effects of ecological and geographic barriers such as salinity, oceanographic conditions, and the presence of the Strait of Hormuz have shaped the genetic structure of I. ornatus in the Persian Gulf and Oman Sea.