Lithistids are an informal group of Demospongiae characterized by a choanosomal skeleton composed of articulated spicules called desmas. They are typically found in deep water on hard substrates. However, this study reports a moderately diverse assemblage of shallow-water lithistid demosponges inhabiting a sandy bottom at a depth of 50 m in the western Indian Ocean, near Cape Guardafui off the Somali coast. The assemblage comprises six species across five genera: Theonella, Discodermia, Manihinea, Gastrophanella, and Microscleroderma. Among these, three species—Discodermia indica, Gastrophanella somaliensis, and Microscleroderma magna—are described as new. Notably, the discoidal M. magna attained a significant size and lived unattached on the substrate, as indicated by the absence of attachment structures. This represents the first documented case of free-living lithistid sponges. The overall composition of the assemblage differs significantly from the lithistid faunas of the South African coast and Madagascar. Its affinities with Arabian Sea lithistids remain unclear due to taxonomic ambiguities in previously reported species, though similarities are evident at the genus level. At the species level, the assemblage shares affinities with nearby regions: Discodermia stylifera is also found in the Red Sea, Manihinea conferta occurs in the Zanzibar region, and Theonella swinhoei is present in Madagascar.