AbstractAnnelida, traditionally divided into Polychaeta and Clitellata, are characterized by serial division of their body into numerous similar structures, the segments. In addition, there is a non-segmental part at the front end, the prostomium, and one at the back, the pygidium. New segments develop in a prepygidial proliferation zone. Each segment contains four groups of chaetae made up of β-chitin, a pair of coelomic cavities separated by mesenteries, and septa. The nervous system is a rope-ladder-like ventral nerve cord with a dorsal brain in the prostomium. For the last stem species a trochophore larva and a benthic adult are commonly postulated. There are two conflicting hypotheses describing the systematization of Annelida: the first postulates a sister-group relationship of Polychaeta and Clitellata, the second sees Clitellata as a highly derived taxon forming a subordinate taxon within the polychaetes which, consequently, are regarded as paraphyletic. Depending on the hypothesis, different characters have to be postulated for the stem species of Annelida. Besides segmentation other characters such as nuchal organs, palps and antennae, body wall musculature, cuticle, parapodia as well as structure of the central nervous system and the foregut play an important role in this discussion. Here, the different characters and character states are critically reviewed and analyzed with respect to morphology and function. The consequences for systematization of their phylogenetic interpretation as autapomorphies, synapomorphies or plesiomorphies are outlined. The resulting hypotheses are compared with those relying on molecular data sets.