We present the description of a new species of genus Timea and the re-description of T. hechteli from cryptic habitats in the Gulf of Mexico. Timea alcoladoi sp. nov. is an encrusting, pale orange sponge, with megascleres ranging from styles to subtylostyles (185–990 μm long) and a single category of microscleres, spherostrongilaster characterized by a prominent rounded centre (5–15 μm in diameter). Timea hechteli was established by Lehnert & Heimler, based on the description of a very small specimen, previously recorded as Halicometes stellata by Little, and transferred to the genus Timea by Hechtel. However, because the name ‘stellata’ was preoccupied by the type species, T. stellata, the species was renamed T. hechteli, to honour George Hechtel. After the revision of Little's material and new material, we present the re-description of T. hechteli. For both species, partial sequences of COI mtDNA and ITS1-5.8S-ITS2 rDNA region were obtained in order to complement our morphological taxonomy and establish their molecular systematic position among tethyids. Tree topologies for both loci were congruent by grouping together our species as a sister group of the main Tethyida clade, which is according to the current systematics of the group. The COI fragment showed Timea as polyphyletic due to two sequences of Timea (from GenBank) that were clustered with other sponge groups. The species described here are the first record of the genus Timea from the Mexican coast of the Gulf of Mexico. A taxonomic key for West Atlantic Timea species is also presented.