This creature has rounded furry ears, a black nose, and small black eyes. It also has four legs and a wide flat tail. The koala otter's back and head are light gray, while its underbelly is a creamy white.
The face of the koala otter strongly resembles that of the koala, a marsupial native to Australia. The rest of the koala otter's body closely resembles a sea otter, though the principal connection to the sea otter seems to be the creature's preference for the backstroke and its playful demeanor.