This species is most easily told apart from its only congener P. dayi by lacking (vs. possessing) two dark, irregular lateral stripes on the head and body, and a shorter caudal-fin in males.

The results of phylogenetic analyses by Rüber et al. (2006) suggest that Pseudosphromenus is most closely-related to Malpulutta in an evolutionary sense.

This species is euryhaline and mostly inhabits lowland, often coastal, habitats containing still or slow-moving brackish or freshwater.

It displays a preference for habitats with surface vegetation or overhanging cover and is commonly found in mangrove swamps and rice paddies.

This species is euryhaline and mostly inhabits brackish estuaries, coastal lagoons and the lower reaches of rivers.

It also occurs in freshwater habitats, however, including a number of inland lakes in Sri Lanka although it appears to have been introduced intentionally.