Here we report on the first record of the family Microzoanthidae (Cnidaria: Anthozoa: Hexacorallia) from Palau, and by extension in Micronesia. Unusually, the species Microzoanthus kagerou was found not in a coral reef environment as has been previously reported elsewhere, but instead inhabiting shaded seawater outflow pipes at the Palau Maricultural Developmental Center on Malakal Island, Koror.