A new free-living marine nematode species of the genus Pseudosteineria Wieser, 1956 affiliated with the family Xyalidae is described based on specimens collected from the sediment of a subtidal benthic environmental habitat in the East Sea, Korea. Pseudosteineria varisetis sp. nov differed from its congeners by the combination of the following characteristics: a relatively long body (1,628-1,691 μm long in males), a circular amphideal fovea situated behind the subcephalic setae, the presence of lateral cuticular alae starting from behind the nerve ring, the presence of eight groups of long subcephalic setae, the presence of irregularly distributed variable lengths of somatic setae on the body, solid spicules (43.2-43.9 μm long) with a cephalated proximal end, a long tubular shaped gubernaculum with dorsal swelling, and a conico-cylindrical tail with two to four terminal setae. In this report, we provide a taxonomic description and illustrations of a new species of the genus Pseudosteineria by differential interference contrast microscopy.