A new species of cuttlefish: Sepia barosei sp. nov. is described from South Africa. Its present distribution is limited to the eastern Agulhas Bank (depth range 119–184 m), but this was based on a small material. It is recognised by prominently dorsal eyes and four turrets (papillae on top of each other) dorsally on the head between the eyes. On the dorsal mantle: four large, prominent patches, two mid anteriorly and two mid posteriorly; smaller turrets, patches and/or tubercles and warts dorsally; skin between these structures smooth and shiny. Ends of I pair of arms without suckers. Cuttlebone lightly calcified, thin and fragile. Second new species, Sepia roeleveldi sp. nov. is also described (distribution: from Hondeklip to Port Alfred, depth range 181–497 m), and is recognised by small, flat warts very densely and uniformly covering dorsal mantle, head and arms. Two prominent tubercles covered by warts on dorsal head; one similar tubercle in the middle of dorsal mantle (sometimes missing). Ends of I pair of arms without suckers. Cuttlebone thin and fragile, thinly calcified. Description of these new small cuttlefish has led to proposing a new subgenus Digitosepia with four species. Both holotypes and some paratypes are deposited in the South African Institute of Aquatic Biodiversity (SAIAB) and other paratypes in the Iziko Museum (SAMC) and the Natural History Museum (NHMUK), London.