It was described by the English carcinologist Lancelot Alexander Borradaile from specimens collected by Arthur Willey in the south Pacific in 1895–1897 and is the type species of the genus Parhippolyte.

[5] In Hawaii it occurs in lava pipes and caves whereas on other islands it is found in more open areas.

[8] On Vatulele Island in Fiji populations of bright red Parhippolyte uvae occur in a complex of anchialine grottoes and pools.

It is taboo for the islanders to kill or harm the prawns in any way, although local guides have been allowed to enter the pools to show them to tourists for some years.

Some research is being carried out in establishing breeding facilities for P. uveae to provide animals for the trade.