Two species of arrow squid,Nototodarus(Oegopsida: Ommastrephidae), are caught in New Zealand waters. The close similarity in most morphometric characters has lead to confusion over the status of the two species. They are distinguished by the number of pairs of suckers on the first right arm; adult males are distinguished by the number of proximal tubercles and the morphology of the distal part of the hectocotylised arm; fresh or frozen specimens can be identified by gel elec‐trophoresis of the enzyme glycerol‐3‐phosphate dehydrogenase.Nototodarus sloaniiis found in southern waters andN. gouldiin more northerly waters around New Zealand as well as southern waters of Australia. Differences between the two species are described and notes presented on their biology, abundance, and exploitation.