Novel category discovery aims to identify unseen classes from unlabeled data by transferring knowledge from labeled categories, but most existing methods perform discovery in opaque latent feature spaces. As a result, they may separate novel categories accurately while providing little insight into what semantic evidence defines each discovered group. We propose xNCD, an explainable novel category discovery framework that performs both representation-based discovery and pseudo-label assignment directly in a structured semantic concept space. Instead of clustering arbitrary deep features, xNCD learns a label-free concept representation by aligning visual features with vision-language similarity priors from pretrained multimodal models, and then applies a unified labeled-and-unlabeled self-labeling objective over concept-space logits. This design makes each discovered category explainable by construction through stable concept signatures and instance-level concept evidence. Theoretically, we show that routing discovery through a semantic concept bottleneck induces a strict restriction of the feature-space hypothesis class, excluding a large family of unconstrained decision rules and biasing induced partitions toward semantically interpretable concept coordinates. Experiments on CIFAR-10, CIFAR-100, and CUB-200 demonstrate that xNCD preserves strong discovery performance while providing intrinsic explanations. Under task-agnostic evaluation, xNCD achieves 92.63% overall accuracy on CIFAR-10, close to UNO's 93.4%, and improves CIFAR-100 overall accuracy from 73.2% to 76.45%, while being the only compared method that provides human-readable cluster- and instance-level explanations.

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