We report on a hexactinellid sponge new to science, Walteria demeterae sp. nov., which was collected from the northwestern Pacific seamounts at depths of 1 271–1 703 m. Its tubular and basiphytous body, extensive lateral processes, numerous oval lateral oscula which are irregularly situated in the body wall, the presence of microscleres with oxyoidal, discoidal and onychoidal outer ends, and the absence of anchorate discohexasters,indicate it belongs to the genus Walteria of family Euplectellidae, which is also supported by molecular phylogenetic evidence from 18 S, 28 S, 16 S rRNA and cytochrome c oxidase subunit I(COI) gene sequences. The unique morphotype, which is structured by a thin and rigid framework of body wall and lateral processes consisting of diactins, characterizes it as a new species. Local aggregations of individuals of this new species coupled with their associated macrofauna in the Suda Seamount are reported, highlighting its functional significance in providing biogenic microhabitats in the deep sea.