Cell division and cell wall synthesis in staphylococci need to be precisely coordinated and controlled to allow the cell to multiply while maintaining their nearly spherical shape. The mechanisms ensuring correct placement of the division plane and synthesis of new cell wall have been studied intensively, however, hitherto unknown factors and proteins are likely to play key roles in this complex interplay. Starting from a subcellular localization- and gene knockdown screen of essential genes with unknown functions in Staphylococcus aureus, we identified a protein with major influence on cell morphology in S. aureus. The protein, here named SmdA (for staphylococcal morphology determinant A), is a membrane-protein with septum-enriched localization. By smdA silencing and overexpression, we have used different microscopy techniques to show that SmdA is critical for cell division, including septum formation and cell splitting. We also identified conserved residues in SmdA that are critical for functionality. Pulldown- and bacterial two-hybrid interaction experiments showed that SmdA interacts with several known cell division- and cell wall synthesis proteins, including penicillin binding proteins (PBPs) and EzrA. Notably, SmdA also affects susceptibility to cell wall targeting antibiotics, particularly in methicillin-resistant S. aureus (MRSA). Together, our results show that S. aureus is dependent on balanced amounts of membrane-attached SmdA in order to carry out proper cell division.