Striped trumpeter, Latris lineata, are being experimentally cultured by the Tasmanian Aquaculture and Fisheries Institute at Taroona, Tasmania. Fish surviving over 30 days post-hatching have frequently developed nervous aberrations associated with a severe granulomatous meningoencephalomyelitis. The myxozoan parasite Pentacapsula neurophila sp.n. was revealed as the parasite causing the disease in the striped trumpeter juveniles. Measurements made of isolated spores indicated that the organism was distinct from all previously described Pentacapsula species. This is the first report of a marine myxozoan parasite of the genus Pentacapsula in Australian waters.