The exquisitely preserved fossil embryos of Markuelia recovered from the limestones of the Middle Cambrian Haoqiao Formation and Upper Cambrian Bitiao formation in western Hunan, South China are described and illustrated in detail for the first time.A new species Markuelia elegans sp.nov.is established based mainly on embryos from the Upper Cambrian.A few of animal’s resting eggs,which are comparable with those of the Ediacaran Doushantuo Formation,have been also found in the Upper Cambrian of western Hunan.The membrane of one egg from the uppermost Cambrian has been replaced by pyrite and the overgrowth of the pyrite crystals exhibits a unique inorganic pattern termed herein ’Pseudoembryo’.The taphonomic setting in deeper water with possible strong reducing conditions promoted the excellent preservation for the Markuelia specimens.The study of Markuelia provides not only constraint on the anatomy,affinity,embryonic development and phylogenetic significance of this wormlike animal and but also opens a new window onto the evolution and development of the earliest animals. The exquisitely preserved fossil embryos of Markuelia recovered from the limestones of the Middle Cambrian Haoqiao Formation and Upper Cambrian Bitiao formation in western Hunan, South China are described and illustrated in detail for the first time. A new species Markuelia elegans sp.nov.is established based mainly on embryos from the Upper Cambrian. A few of animal’s resting eggs, which are comparable with those of the Ediacaran Doushantuo Formation, have been also found in the Upper Cambrian of western Hunan. The membrane of one egg from the uppermost Cambrian has been replaced by pyrite and the overgrowth of the pyrite crystals exhibits a unique inorganic pattern termed herein ’Pseudoembryo’. The taphonomic setting in deeper water with possible strong reducing conditions promoted the excellent preservation for the Markuelia specimens. The study of Markuelia provides not only constraint on the anatomy, affinity, embryonic development and phylogenetic significance of this wormlike animal and but also opens a new window onto the evolution and development of the earliest animals.