A new species, Olyra parviocula, is described from the Kameng River, Brahmaputra River drainage in Arunachal Pradesh, northeastern India. The new species differs from congeners in having small eye diameter 5–8% HL; short adipose fin, not confluent with caudal-fin, its base length 9–12% SL; dorsal-fin branched rays 6; anal-fin rays viii–xi, 8–10 and maxillary barbel almost reaching pelvic-fin base. A key to identification of all valid species of Olyra is provided.