A new moray eel, Gymnothorax niphostigmus, is described here with four specimens from northern and eastern Taiwan. The new muraenid is clearly distinct from its most similar species, Gymnothorax leucostigmus, in the character combinations of having denser and smaller whitish snowflake-like patches over the entire body, darker brown ground coloration, anal fin with a distinct white margin, and approximately 140-142 vertebrae.