Two species of the antarctic hydroid genus Oswaldella Stechow, 1919, are considered. The first, described by Stepan'yants (1979) as a subspecies, O. billardi shetlandica, has been raised to specific level and will henceforth be indicated as Oswaldella shetlandica Stepan'yants, 1979. A second species is described as Oswaldella elongata spec. nov. Both species are differentiated against the remaining known species of Oswaldella; new records are added and the geographical distribution is discussed.