Caesio caerulaurea was first formally described in 1801 by the French naturalist Bernard Germain de Lacépède with the type locality given as Molucca in Indonesia.

In 1876 the Dutch ichthyologist Pieter Bleeker designated C. caerulaurea as the type species of the genus Caesio.

[5] Caesio caeruaurea has a quite deep, fusiform, elongated body which shows moderate lateral compression.

In the Pacific Ocean their range extends east as far as French Polynesia, northwards to southern Japan and south as far as Vanuatu and New Caledonia.

[1] This species occurs on coastal, lagoon and seaward reefs, typically where there is a healthy growth of corals.

They attain sexual maturity quite early, have a high fecundity with numerous small pelagic eggs.

[2] Caesio caerulaurea is an important quarry for coastal fisheries, and is frequently recorded in fish markets in Indonesia and the Philippines.