A new species of Gastrophanella, G. cavernicola sp. nov. (Demospongiae: Siphonidiidae), is described from submarine caves in Fernando de Noronha Island (north-east Brazil), Carrie Bow Cay and Columbus Cay, Belize (central Western Atlantic), at depths of 5-30 m. It differs from all other species of the genus by its lobate shape with thin superficial canals and centrotylote tylostrongyles. Gastrophanella cavernicola sp. nov. is the second record of the genus Gastrophanella from both Brazil and the Caribbean. It is the sixth ‘lithistid’ sponge reported from the Brazilian coast, whereas at least 32 other desma-bearing sponges are known from the Caribbean. The genus now includes five valid species, G. implexa Schmidt from the West Indies (type species), G. mammilliformis Burton from South Africa, G. primore Gómez from the Pacific Coast of Mexico, G. stylifera Mothes & Silva from south Brazil, and G. cavernicola sp. nov. from north-east Brazil and Belize. Aciculites oxytylota Lévi & Lévi from New Caledonia is transferred to Siphonidium Schmidt. The family Siphonidiidae Lendenfeld, which is probably related to order Hadromerida, is redefined to contain only Siphonidium and Gastrophanella, both with fused rhizoclone desmas associated to microspined exotyles.