[4] It is monotypic, being represented by the single species Xipholeptos notoides,[5] commonly known as the southern pygmy squid.

[6] This species occurs in beds of seagrass in bays and inlets where it feeds during the night on small crustaceans such as shrimp.

In the daytime they remain hidden within the seagrass, adhering to the leaves of the seagrass using a glue excreted by a gland on the dorsal surface of the body.

The females attach the eggs onto seagrass blades, most typically species of the genera Heterozostera and Zostera.

[7] Molecular data suggest that Xipholeptos from western Australia represent a distinct species, but its formal description awaits further study.