Hallucigenia is unquestionably a panarthropod, and has long been interpreted as a stem-group onychophoran – a position that has now found support from phylogenetic analysis.
A key character demonstrating this affinity is the cone-in-cone construction of Hallucigenia claws, a feature shared only with modern onychophorans.
Hallucigenia also exhibits certain characters inherited from the ancestral ecdysozoan, but lost in the modern onychophorans – in particular its distinctive foregut armature.

Below is a cladogram for Hallucigenia according to Yang et al.,
2015.
Hallucigenia is unquestionably a panarthropod, and has long been interpreted as a stem-group onychophoran – a position that has now found support from phylogenetic analysis. A key character demonstrating this affinity is the cone-in-cone construction of Hallucigenia claws, a feature shared only with modern onychophorans. Hallucigenia also exhibits certain characters inherited from the ancestral ecdysozoan, but lost in the modern onychophorans – in particular its distinctive foregut armature.
Below is a cladogram for Hallucigenia according to Yang et al., 2015.
Hallucigenia