Gnathia bermudensis sp. nov. is described from mesophotic coral ecosystems in Bermuda; it is distinguished by pronounced and pointed supraocular lobes, two superior frontolateral processes and a weak bifid mediofrontal process, pereonite 1 not fused dorsally with the cephalosome, and large eyes. This is the first record of a species of Gnathia from Bermuda. A synopsis and key to the other Gnathia species from the Greater Caribbean biogeographic region is provided.