The coral-inhabiting hermit crab Paguritta gracilipes Melin, 1939 has been represented only by the two syntypes and three more recent specimens, all from the Ogasawara Islands. An additional specimen obtained from Hachijo Island in the Izu Islands now allows us to describe more precisely the coloration in life, which is an important diagnostic feature for identifying the species of the genus. The study of one of the two syntypes and other available specimens has revealed morphological inaccuracies in published accounts and made possible the description of the left cheliped for the first time. This species is rediagnosed and illustrated in detail.