The new species of Zanclea sango sp. nov. is described from Okinawajima Island, Ryukyu Archipelago, south-western Japan. The new hydrozoan species is associated with at least three scleractinian corals (Pavona divaricata, P. venosa and Psammocora contigua). Zanclea sango sp. nov. is a polymorphic hydroid and the hydrorhiza grows between the coral skeleton and calicoblastic ectoderm. The hydrocaulus and hydrorhiza are surrounded by perisarc. Newly released medusae are almost spherical, with four perradial exumbrellar nematocyst pouches including stenoteles, and two long marginal tentacles with cnidophores containing macrobasic euryteles. Zanclea sango sp. nov. is allied to Zanclea gilii Boero et al., 2000 and Zanclea margaritae Pantos & Bythell, 2010, but it is distinguished by its cnidome, the presence of a perisarc around hydrorhiza, and lower host-specificity. According to a hypothetical Zanclea phylogeny, the ancestral species of Zanclea had an opportunistic association with some benthic organisms, such as algae or bivalves, and its hydrorhiza was covered by a perisarc. Later, some species established specific associations with benthic animals, after which the hydrorhiza lost the perisarc and became directly covered with host tissue. Among Zanclea inhabiting corals, the present species, with multiple coral host species and a perisarc around the hydrorhiza, seems to retain more ancestral character states than Z. gilii and Z. margaritae, which have specific coral host species and no perisarc around the hydrorhiza.