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Abstract The taxonomy of theParachela–Oxygaster–Macrochirichthysclade of Xenocyprididae has been confused since the original descriptions ofParachela oxygastroidesandParachela hypophthalmusin the mid‐19th century. The confusion seems attributable to the substantial intraspecific variation in color and other morphological characteristics of species ofOxygasterandParachela. Morphological data on 401 specimens from throughout the range ofParachelaand molecular phylogenetic analyses indicate that six available species names forParachelaare valid:Parachela cyanea,P. hypophthalmus,Parachela ingerkongi,Parachela johorensis(removed from the synonymy ofP. oxygastroides),P. oxygastroides, andParachela williaminae. In addition, two new species ofParachela,Parachela melanostictaandParachela microlepis, are described.Chela pointoniis a synonym ofP. oxygastroides, not a valid species ofOxygasteras previously hypothesized, andParachela maculicaudais a synonym ofParachela johorensis. Considerable morphological and genetic variation is present in all well‐sampled species ofParachela.