The smallest fish in the world is Paedocypris fish, which lives in small streams on the island of Sumatra in Indonesia. The size of this fish is only about 7.9-10.3 mm in length, which makes it one of the smallest fish in the world. Paedocypris fish has an unusual appearance, with a transparent body and red eyes. It also has unique adaptations to life in small streams, such as enlarged muscles for swimming against the current and reduced jaws for eating small insects and plankton.