Damselfishes of the genus Stegastes are among the most conspicuous benthic reef-associated fish in the Gulf of California, and the two most commonly found species are the Beaubrummel Gregory Stegastes flavilatus and the Cortez damselfish Stegastes rectifraenum. Both species are described as ecologically and morphologically very similar. However, the niche theory predicts that coexisting species will tend to minimize competition through niche partitioning. We, therefore, investigated the degree of their ecological similarity through their morphology, trophic ecology, and spatial distribution, as well as, the effects of environmental variables on their abundance. We showed that S. rectifraenum is highly abundant in the entire Gulf of California while S. flavilatus is only found in the central and southern part. The abundance of S. rectifraenum was higher in shallow water and decreased when the cover of macroalgae and sand increased. No environmental variable was related to the abundance of S. flavilatus. Both species had distinct isotopic niches: S. flavilatus fed almost exclusively on plankton and zoobenthos, while S. rectifraenum had an omnivorous diet mixing turf, zoobenthos and plankton. The diet divergence was reflected in the morphology of the two species. Stegastes flavilatus had a more rounded body shape, with a higher supraoccipital crest and more gill rakers than S. rectifraenum, which may increase its ability to feed on vagile invertebrates and zooplankton. Our results support the hypothesis that a niche partition has occurred between the two species. Furthermore, the importance of planktonic food sources to both species, considered as benthic territorial feeders, challenges the traditional ecological description of the Stegastes species.