A new species of deep water homolid crab, Homola milkolk, new species, is described from a specimen obtained from a Nautilus (Mollusca: Cephalopoda: Nautilidae) trap in Palau. The new taxon is closest to H. mieensis Sakai, 1979, known from Japan to New Caledonia, but can easily be separated by its proportionately longer carapace, more elongate ambulatory legs, and armature of the carapace and legs. The taxonomy of H. mieensis is also discussed.