Very special thanks for the original desription of Cirrhilabrus hygroxerus to Dr. Gerald R. Allen and Dr. Michael P. Hammer.
The new species is currently known only from a single reef area in the eastern Timor Sea, approximately 200 km north of Darwin, Australia.
It was collected and observed in depths of about 18–37 meters.
The habitat appears to be localized to sloping rubble bottoms with scattered, low outcrops of rock or coral and occasional large coral outcrops.
Similar species: Cirrhilabrus humanni ( Allen & Erdmann, 2012)