A new species of pagurid hermit crab, Pagurus decimbranchiae, is described and illustrated based on 20 specimens collected from shallow waters of the Pacific coast of Japan ranging from Boso Peninsula to Tanegashima Island. It is quite distinctive in having the rudimentary arthrobranch on the third maxilliped represented by a single bud, however close morphological similarity is found between the new species and P. moluccensis Haig and Ball. Comparisons are also made among other species, including P. boriaustraliensis Morgan, P. sp. cf. boriaustraliensis sensu Rahayu and Komai (2000) and the members of the P. anachoretus group. The present generic assignment of the new species should be considered provisional, as more extensive study is needed to investigate phylogenetic relationships of the new species and the other species of Pagurus.