We describe a new, tiny species of Schindleria from a reef lagoon in the Red Sea off the coast of Hurghada, Egypt. Schindleria edentata, new species, belongs to the short dorsal-fin type of Schindleria, with the dorsal and anal fins of about equal length. Schindleria edentata is characterized by an elongated but relatively deep body (body depth at anal-fin origin 10.8% of SL and at 4th anal-fin ray 10.9 % of SL); a short dorsal fin originating just slightly anterior to the anal fin (predorsal-fin length 60.9% of SL, pre-anal fin length 64.8% of SL); a stubby head with a steep frontal profile, a short snout (i.e., 23.1% of head length), and large eye (i.e., 27.7% of the head’s length); a long pectoral radial plate (length 7.6% of SL); four dorsal and four ventral procurrent caudal-fin rays increasing in length posteriorly; last procurrent ray simple without additional spine and, although the longest, not distinctly elongate; 15 dorsal-fin rays; 13 anal-fin rays; the base of the first anal-fin ray positioned below the base of the third dorsal-fin ray; upper and lower jaws toothless; in vivo with translucent body; eye black; swim bladder capped by a melanophore blotch; no pigmentation externally on body after preservation.