Caesio varilineata was first formally described in 1987 by the American ichthyologist Kent E. Carpenter with the type locality given as the Persian Gulf.

[4] The eyes are large, the mouth is small and terminal and is protrusible, being able to be extended forward to swallow food.

[5] Caesio varilineata is only found in the Indian Ocean from western Indonesia to the eastern coast of Africa, Red Sea and Persian Gulf included.

[4] This species was recently reported from the Mediterranean Sea off Alexandria, Egypt, a likely entry via the Suez Canal.

[7] Caesio varilineata has a diet consisting of zooplankton which it feeds on in aggregations in the middle of the water column.