The front of the body and the back are bright blue; the rear of the body, the belly, the anal fin and the tail are yellow, and the amount of yellow varies between individuals. The species name hemicyanea ("half blue") refers to the blue head and upper body. In the trade it is confused with Chrysiptera parasema, which has a blue body with only the tail yellow; some even call C. parasema the azure damsel. The sources consulted describe no colour difference between males and females.
It lives in lagoons and nearshore reefs at 1–38 m, in small groups and almost always among branching corals, especially Acropora. It feeds on plankton 30–50 cm above the bottom. Its range is small: Western Australia (Rowley Shoals, Scott Reef, Ashmore Reef), Indonesia and Timor-Leste.
It is oviparous and forms distinct pairs when breeding: the eggs stick to the substrate and are guarded and aerated by the male. Its reproduction in the wild is poorly studied, but it has been bred in captivity: Quality Marine announced aquacultured fish in 2017, and ORA (Florida) lists it among its captive-bred fish.
The IUCN listed it as Vulnerable (criterion A2c) in 2021: its population is decreasing and its habitat is declining in quality. The threats listed are fishing and collecting, notably for the international aquarium trade, and temperature extremes affecting its reefs. Choosing a captive-bred fish when you can avoids adding to that harvest.