The anomuran sand crab family Albuneidae sensu stricto was previously known worldwide from 41 validly described Recent species in eight genera and four fossil taxa of the genus Albunea. A worldwide revision is presented based on a comprehensive survey of the literature and examination of more than 1700 specimens representing all known species. The state of taxonomic knowledge regarding the Albuneidae is summarized; the family is divided into two new subfamilies; two new genera and six new species of albuneids are described; and new information on species' ranges and biology is presented. Additionally, the genera Blepharipoda Randall and Lophomastix Benedict are removed from the Albuneidae and placed in a new family, based in part on characters of the gill formula and morphology. This new family contains six Recent species and one fossil taxon. Although there is some doubt about its hippoid affinities, it is retained in the Hippoidea as the most basal taxon, pending further cladistic phylogenetic analyses.