A new species of free-living marine draconematid nematode, Dracograllus trukensis sp. nov., is described based on the specimens collected from the sediments of a intertidal seagrass bed from Chuuk Islands, Micronesia. Dracograllus trukensis sp. nov. differs from other species of the genus by the combination of the following characteristics: the presence of numerous minute spiny ornamented body cuticular annules in both sexes, eight cephalic adhesion tubes inserted on the head capsule in both sexes, the presence of stiff posteriorly directed setae anterior to posterior adhesion tubes in both sexes, the shape (large, elongated, open loop-shaped in male and large, elongated, closed loop-shaped in female) and position (longer ventral arm extending to the first body annule in male) of amphideal fovea, shorter spicule length (34–42 μm), the presence of sexual dimorphism in shape and length of the non-annulated tail terminus, and number of posterior sublateral adhesion tubes (10 in male and 13–15 in female) and posterior subventral adhesion tubes (8–10 in male and 9–11 in female). A comparative table on the biogeographical and ecological characteristics of the species of Dracograllus is presented. This is the first taxonomic report on the genus Dracograllus from Chuuk Islands, Micronesia, central western Pacific Ocean.