The systematics of bamboo corals of the Family Keratoisididae are evaluated using both DNA sequences and morphological data. Sequence data were obtained from 398 specimens, from which 77 unique haplotypes representing the mtMutS and 18S gene regions were identified. These were aligned with sequences downloaded from GenBank from an additional 12 keratoisids and 6 octocoral outgroups. Phylogenetic analyses recovered seven well-supported major clades, the most recently derived of which consists of several subclades. Each clade and subclade can be characterized by a suite of morphological characters that include axis construction, branching pattern, polyp form, and sclerite type and arrangement. This analysis also shows that keratoisid genera described >100 years ago are paraphyletic and need revision and that a large number of new genera will need to be described.