We report the detection of a new satellite of M31 , projected close to M32 . And VIII is tidally distorted , with length \sim 10 kpc and width a few kpc . It contains 5–12 planetary nebulae ( PNe ) and 1–3 globular clusters , and has a velocity of –204 km/s with respect to M31 , some 350 km/s away from M32 ’ s velocity . There are also \sim 4 \times 10 ^ { 5 } solar masses of HI , well-separated from the disk , at the same position and velocity . The satellite has luminosity of 1.2–2.4 \times 10 ^ { 8 } L _ { \odot } , and a central surface brightness of order \mu _ { V } = 24 . Both these values are typical of Local Group dwarf galaxies . Its surface brightness is some 6 magnitudes brighter than any of the stellar streams found in the Milky Way or M31 . The three associated globular clusters have reddening consistent with foreground reddening from the Milky Way only , making it likely that the satellite is in front of M31 , unlike the giant tidal stream of Ibata et al . ( 2001 ) , which is behind M31 in the SE quadrant . However , the major axis of And VIII is aligned with the western edge of this giant stream , and we suggest that its unusual fan shape is caused by superposition of two streams , the westernmost of which was tidally stripped from And VIII .