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The koala is known as the Australian bear, but is much closer to being a relative of the kangaroo. They are only found wild in the woods of Australia. Koalas are arboreal marsupials living in Queensland and Victoria. They eat the leaves on the eucalyptus trees. Koalas are 2 to 2 1/2 feet long, tailless, and have thick, soft, grayish fur. They have large furry ears, a curved, black nose, little eyes, and five toes on each foot so it can hold on to things and climb.