The pygmy pipehorse (or pygmy pipedragon), Kyonemichthys rumengani, is not a pygmy seahorse but I've included it here due to the ease of mistaking the two. These fish are distantly related to seahorses, in fact the pipehorses are an intermediate group between pipefish and seahorses (hence the name!). The Lembeh pygmy pipehorse (or Lembeh seadragon, Lembeh pipe dragon), as it it sometime known is very slender and reaches a maximum of 2.7 cm in length, making it very hard to find. The name 'Lembeh' pygmy pipehorse is misleading as it is found throughout Indonesia, I've seen it at Wakatobi and Walea, as well as Philippines, Fiji, Maldives and the Red Sea.
It generally can be found in sandy area or overhangs in depths from 5-25 m. It grasps hydroids and algal turf with the tip of its prehensile tail. Very little is known about its biology.