An ostracod assemblage from the Late Ordovician (Katian) Phu Ngu Formation of northern Vietnam, South China paleoplate, yields typical Baltic and Laurentian‐affinity genera together with some endemic forms. Detailed paleontological and sedimentary analysis of the Phu Ngu Formation suggests it was deposited in a deeper marine forearc setting, below storm wave base, but with (at least intermittently) oxygenated sea‐bottom conditions. Taphonomic assessment of the ostracod assemblage suggests it is in situ. The occurrence of globally widespread ostracod genera, including those from paleocontinents that were geographically remote from South China, is difficult to reconcile with the assumed limited dispersal capability of ostracods in shallow‐shelf settings—a characteristic that has often been used to refine Ordovician paleogeographical reconstructions. Here, we present the novel approach of using paleoclimate reconstructions to assess the environmental distributions of Paleozoic ostracod genera. We show that the deep‐marine depositional setting of our documented assemblage, together with general circulation model simulations of Ordovician ocean‐temperatures, suggests an early radiation of benthic ostracods into the deeper, colder, and thermally uniform ocean below the thermocline. The presence of a globally‐distributed psychrospheric (cool and deep marine) ostracod fauna would imply that our understanding of Ordovician ostracod dispersal is incomplete, and future paleobiogeographical studies should try to decouple the signal of shallow‐shelf benthic taxa, often endemic and probably limited by sea temperature, from those that are more cosmopolitan and tolerant of cooler, deeper waters.