Crotalaria nicobarica F. Saleem, L.J. Singh, S. Subramaniam & A. K. Pandey is described and illustrated from tropical evergreen forest of Great Nicobar Island, Andaman and Nicobar Islands, India. This new species closely resembles Crotalaria lunulata Heyne ex Wight &Arn., Crotalaria paniculata Willd. and Crotalaria ramosissima Roxb. which occurs in the Western and Eastern peninsular India and occupies forest edges and cut-slopes of hillocks. The new species is distinguishable from the latter two based on morphological characters. An analysis shows that the new species differs from closely related species with respect to vegetative and reproductive characters. Based on the hairy surface of plants, persistent bracts and bracteoles, silky pubescence of vexillum and style, oblong stalked pods the species is hypothesized to be a new member of the Crotalaria section Crotalaria.