Pseudopolydora cf. kempi and Pseudopolydora cf. reticulata, which are morphologically similar, are sympatric in Gamo Lagoon, near Sendai on the Pacific eastern coast of Honshu, Japan. Reproduction, larval development, and larval morphology of these two species were compared. The larval developmental pattern of P. cf. kempi was determined to be short-term planktonic with lecithotrophy and adelphophagy, whereas that of P. cf. reticulata was long-term planktonic with planktotrophy. The number of embryos per capsule differed between the two species: 0–16 for P. cf. kempi and 62–405 for P. cf. reticulata. Nurse eggs were only found for P. cf. kempi. The results of this study suggest that some previous studies attributed to P. kempi may have been to P. cf. reticulata or to another species in this complex.