This taxonomic revision concerns the Australian and Indo-Pacific species of small lucinid bivalves possessing a deeply inset internal ligament. Nine species of Pillucina are recognised of which four occur around Australia including the two new species, P. pacifica and P. australis. Two other new species are described; P. denticula from South Africa and P. mauritiana from Mauritius. Pillucina vietnamica is common along the Queensland coast and P. symbolica the only species previously recorded from Australia is considered conspecific with the wide ranging species P. pisidium. A new genus, Chavania, includes two species; C. striata is widely distributed in the Indo-West Pacific including eastern and western Australia, while C. erythraea is restricted to the Arabian Peninsula. Two species of Wallucina live around Australia, W. assimilis is endemic occurring at southerly locations from New South Wales to North West Cape, while the tropical species, W. fijiensis, is found in island habitats of Queensland but is widely distributed in the Indo-West Pacific. Another new genus, Funafutia, is proposed for the species, F. levukana, recorded from Australia for the first time. Details of anatomy are provided for Pillucina vietnamica, W. assimilis and C. striata. Symbiotic bacteria are confirmed for the first time in the lateral zone of gill filaments of Pillucina vietnamica and Wallucina assimilis.