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Koala Bear Ornament University Of Illinois Merchandise It’s safeLiving in the trees of Australia is one of the world's most lovable animals, the Koala Bear. With a round face, big nose, and fluffy ears, the Koala has often been used as a model for teddy bears. But these "bears" actually aren't bears at all, they are marsupials. Once hunted for their thick fur, Koalas are now a protected species.