The Hallucigenia, a worm-like creature with legs, spikes, head and tail, is now considered an important link with modern velvet worms.

This finding also gives scientists important clues as to how different animal groups evolved into their modern bodies.

Scientist said they found out Hallucigenia claws' revealed an organization similar to those in modern velvet worms. Hallucigenia have layers of cuticle stacked one inside the other.

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The jaws of velvet worms also have the same cuticle they now use for chewing there food, researchers added.

Martin Smith, one of the researchers, said it's often thought that modern animal groups formed during the Cambrian Explosion.

He believes that determining in-between fossils like Hallucigenia can help scientists figure out how different animal groups evolved into their modern-day forms.

Javier Hernandez, one of the researchers, said this helps them understand the evolutionary tree of arthropods like spiders, insects and crustaceans.

He said that most gene-based studies suggest arthropods and velvet worms are closely related to each other.

Researchers found out that arthropods are actually closer to tardigrades, a group of hardy microscopic animals best known for its ability to survive sub-zero temperatures.

Hallucigenia has been called an evolutionary misfit and baffled scientist on its connection with modern animal groups.

These legged worms, collectively known as lobopodians, were discovered in the 1970s. It lived approximately 505 million years ago during the Cambrian Explosion.

Originally, the spine found in the worm's back was originally thought to be legs, while its legs were thought to be tentacles. Its head was mistaken for its tail, scientist explained.

This fossil was found in the Burgess Shale in Canada's Rocky Mountains, one of the richest Cambrian fossil deposits in the world.

This worm like creature had row of rigid spines found along its back and seven or eight pairs of legs ending in claw.

They can grow from five millimeters to 35 millimeters in length and lived on the ocean floor during the Cambrian period, scientists said.