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We report the discovery of an ultrafaint dwarf in the constellation of Pegasus. Pegasus V (Peg V)/Andromeda XXXIV was initially identified in the public imaging data release of the DESI Legacy Imaging Surveys and confirmed with deep imaging from Gemini/GMOS-N. The colour–magnitude diagram shows a sparse red giant branch (RGB) population and a strong overdensity of blue horizontal branch stars. We measure a distance to Peg V of $D=692^{+33}_{-31}$ kpc, making it a distant satellite of Andromeda with MV = −6.3 ± 0.2 and a half-light radius of rhalf = 89 ± 41 pc. It is located ∼260 kpc from Andromeda in the outskirts of its halo. The RGB is well fitted by a metal-poor isochrone with [Fe/H] = −3.2, suggesting it is very metal poor. This, combined with its blue horizontal branch, could imply that it is a reionization fossil. This is the first detection of an ultrafaint dwarf outside the deep Pan-Andromeda Archaeological Survey area, and points to a rich, faint satellite population in the outskirts of our nearest neighbour.