A systematic survey of the sponge fauna of the Aegean Sea has been carried out. Twenty-eight stations located in the Aegean Sea were explored and 59 species of Demospongiae were collected from this particular area, which covers a broader geographical area of the Aegean and Cretan Seas. Some of the species found are poorly known for the Mediterranean fauna, like Cerbaris curvispiculifera and Spongosorites flavens, which are reported for the first time in the Aegean Sea and generally in the eastern Mediterranean. The species Axinyssa michaelis sp. nov. (Halichondriidae: Halichondrida) is new to science. In this paper, a description of the new species is presented along with the description of the first recorded species in the Aegean Sea. In addition to the taxonomic description of the species, some ecological data and a distribution pattern are also presented.