We herein describe Characidium satoi, new species, only known from its type locality at Rio Curral das Éguas, a small tributary of Rio Abaeté, in the Rio São Francisco basin, Brazil. It can be distinguished from its congeners by the following characteristics: area between the pelvic fin and the origin of anal fin moderate to strongly convex in lateral view; presence of irregular and discontinuous bars, forming dorsal blotches separated from ventral V-, W-, or diamond-shaped marks; and the first anal-fin radials inserted between the fifth and sixth caudal vertebrae. The juveniles and mature females of Characidium satoi, new species, have smooth fin rays, while mature males have hooks on pelvic and, in some specimens, pectoral and dorsal fins. Moreover, females and immature males have irregular bars on dorsum and fuzzy vertical bars on body; during the breeding season, males develop uniformly darker pigmentation on body and head, lacking any distinctive vertical bar on body. This seasonal color dimorphism is reported in the family Crenuchidae for the first time.

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