The osteology of Indostomus paradoxus Prashad and Mukerji is described and the evidence for its affinities discussed. The array of characters common to both Indostomus and the higher paracanthopterygii suggests a relationship between the two groups which is expressed by proposing a new paracanthopterygian order – Indostomiformes – of which the only known representative is Indostomus paradoxus.