Squat lobsters are dorsoventrally flattened crustaceans with long tails held curled beneath the cephalothorax. They are found in the two superfamilies Galatheoidea and Chirostyloidea, which form part of the decapod infraorder Anomura, alongside groups including the hermit crabs and mole crabs. They are distributed worldwide in the oceans, and occur from near the surface to deep sea hydrothermal vents, with one species occupying caves above sea level. More than 900 species have been described, in around 60 genera. Some species form dense aggregations, either on the sea floor or in the water column, and a small number are commercially fished.

The Decapoda or decapods are an order of crustaceans within the class Malacostraca, and includes crabs, lobsters, crayfish, shrimp, and prawns. Most decapods are scavengers. The order is estimated to contain nearly 15,000 extant species in around 2,700 genera, with around 3,300 fossil species. Nearly half of these species are crabs, with the shrimp and Anomura including hermit crabs, porcelain crabs, squat lobsters making up the bulk of the remainder. The earliest fossils of the group date to the Devonian.