Present study report the Mud‐dwelling moray, Diaphenchelys dalmatian Hibino, Satapoomin & Kimura (Ichthyological Research, 64, 458) for the first time from the Indian coast. The species was only known by its first description from the Andaman Sea, marginal sea of the northeastern Indian Ocean and the Gulf of Thailand and this report extends its range of distribution to the Bay of Bengal along the Indian coast. Current species is characterized by presence of following identifying characters: ground colour white with brown dalmatian‐like spots, tail is longer (62.4% of TL) than the preanal length, 3 infraorbital pores, 5 mandibular pores, and pre‐dorsal vertebrae 6, pre‐anal vertebrae 47, total vertebrae 132. [ABSTRACT FROM AUTHOR]