While molecular studies of annelid diversity and phylogeny have increased, many groups including the family Euphrosinidae (Amphinomida) remain understudied. Euphrosinids are generally small, short but stout annelids characterized by long, calcareous chaetae that are often distally forked or ringent. We examined 59 specimens of Euphrosinids from the 2011 and 2013 IceAGE (Icelandic Animals: Genetics and Ecology) cruises using light and scanning electron microscopy and sequenced fragments of the nuclear 28S rDNA and mitochondrial 16S rDNA genes. Three additional specimens from the Southern Ocean, one specimen off the coast of Southern California, and existing DNA 28S and 16S sequences were also sampled. Morphological studies revealed 5 morphospecies representing the three largest genera of Euphrosinidae to be present around Iceland. In our maximum likelihood analysis of 28S + 16S, Euphrosine was recovered as a ‘basal’ paraphyletic grade; a clade containing E. aurantiaca and E. foliosa (plus three unidentified species) was recovered sister to Euphrosinopsis + Euphrosinella. ABGD species delimitation analysis based on 16S sequences identified fourteen species with eight sampled from Icelandic or surrounding waters of which only two had existing sequence data. We have strong evidence for new species of Euphrosinopsis and Euphrosinella. Unfortunately, because most of this material was preserved in ethanol, we were unable to characterize key characters related to the branchiae needed for adequate species descriptions. DNA barcodes and images for all specimen are available on the Barcode of Life Data Systems database to assist in future studies on Euphrosinidae biodiversity.