The term Cuddly Marsupial is represented by the crossword solution KOALA, which is a five-letter word. Koalas are native to Australia and are known for their cuddly appearance and their marsupial pouch in which they carry their young. They are herbivores and feed mainly on eucalyptus leaves. Koalas are an iconic species of Australia and are considered a vulnerable species due to habitat loss and human interference.