The term Cuddly-Looking Marsupial can be summed up by the crossword solution of KOALA, which is a 5 letter word. Koalas are native to Australia and are known for their soft, furry coats and large ears. They are marsupials, meaning they carry their young in a pouch. Koalas are herbivores and feed mainly on eucalyptus leaves. They are also one of the most iconic animals of Australia and are beloved by many.