Homolodromia rajeevani, a new species of deep-water homolodromiid sponge crab, is described from the northern Indian Ocean (Arabian Sea, depth 957 m, and Bay of Bengal, 645 m), and is the first record of the genus from the area. This species resembles the western Indian Ocean species, namely, Homolodromia bouvieri Doflein, 1904, in having 2 terminal spines on the propodi of the last two pereopods, but can be easily distinguished from the latter species by the inflated carapace, simple long setae on carapace and appendages, slender pseudo-rostral spines separated by a U-shaped base, and a slender arched dactylus of cheliped with maximum elevation at proximal part which bears broadly circular depressions with sparse setae. The most diagnostic character is the higher number of spines on the occlusal surfaces of propodal thumbs and dactyli of the pseudochela of the last two pereopods as compared to H. bouvieri. A key for the identification of the species under the genus Homolodromia is also provided.