The family Psammodrilidae (Annelida) is a group of small polychaetes hitherto containing three nominal species in Psammodriloides and Psammodrilus. Psammodrilus swedmarki, n. sp. and P. moebjergi, n. sp. are described from subtidal coarse sand in Bermuda. Both new species are interstitial, as is the monotypic Psammodriloides fauveli Swedmark, 1958, which they resemble by their small size and lack of a muscular collar region. However, studies with scanning electron microscopy show that the larger, hermaphroditic P. moebjergi possesses a pair of peristomial dorsolateral non-ciliated areas with hexagonal cells representing those of the characteristic collar region of Psammodrilus. The uncini of both species resemble those of Psammodrilus balanoglossoides Swedmark, 1952. The systematically contradicting characters support a synonymization of the two genera [monotypic Psammodriloides becomes a junior synonym]. An emended diagnosis of Psammodrilus and a key to the species are presented.