Pseudosimochromis margaretae is a species of cichlid endemic to Lake Tanganyika where it is only known from the area of Kigoma in Tanzania. It prefers waters with rock-rubble substrates, mostly at less than but not deeper than . It can reach a length of SL. It can also be found in the aquarium trade.
The specific name honours Margaret Mary Smith (1916-1987), who was the first director of the J.L.B. Smith Institute of Ichthyology.