A new green palmelloid alga, Palmophyllum umbracola sp. nov., is described from material collected from the Kermadec and Poor Knights Islands off northern New Zealand. The vivid green, prostrate thalli consist of unconnected, individual cells (6-7 .mu.m diam.) embedded in a firm mucilaginous matrix. Each cell has a single cup-shaped chloroplast with embedded starch grains but without a pyrenoid or eyespot. A single, large organelle, which may be associated with mucilage secretion, is always present at the open end of the cup-shaped chloroplast. The alga possesses the typical chlorophyte pigments chlorophylls a and b, carotene and xanthophylls as well as an unidentified orange pigment. The taxonomic position of Palmophyllum within the Chlorophyta remains uncertain, but provisional placement in the Chlorococcales is suggested.