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A new species of miniature fish of the characid genus Priocharax is described from a small lake near the rio Ipixuna, rio Purus drainage, Amazonas State, Brazil. It is distinguished from all congeners except P. pygmaeus by the lower number of teeth on the maxilla and dentary. It differs from P. pygmaeus by the presence of two postcleithra and 22-27 branched anal-fin rays (vs absence and 19-22). The new species is further distinguished from other species of Priocharax by a combination of characters involving the number of pelvic-fin rays and branched anal-fin rays, the number of postcleithra, the shape of postcleithrum 3, and the absence of the claustrum. Molecular evidence based on COI sequences of all valid species of Priocharax also corroborates the validity of this new species. [ABSTRACT FROM AUTHOR]