Submersible diving in the 1980/90s in the Bahamas and Cuba and 2013–2018 at Curaçao, Dominica, and Roatan resulted in the collection of a new species of Polylepion, a genus of wrasse previously known only from the Indian and Pacific Oceans. The new species, which inhabits the rariphotic reef-fish faunal zone at depths of 219–457 m, is another example of a deep-reef species belonging to a largely shallow-reef family, in this case the family Labridae. Here, we describe the new species and provide a phylogenetic placement for it by adding new sequence data from 12 genetic markers for the new species and one of its two congeners (P. cruentum from the eastern Pacific Ocean) to a previously published dataset comprising 336 species of wrasses that includes the other congener, P. russelli, from the Indian and West/Central Pacific Oceans. Our results resolve the phylogenetic history of the species of Polylepion and provide the first molecular support for the monophyly of the genus.