The evolution and diversification of euthyneuran slugs and snails was likely strongly influenced by habitat transitions from marine to terrestrial and limnic systems. Well-supported euthyneuran phylogenies with detailed morphological data can provide information on the historical, biological and ecological background in which these habitat shifts took place allowing for comparison across taxa. Acochlidian slugs are "basal pulmonates" with uncertain relationships to other major panpulmonate clades. They present a unique evolutionary history with representatives in the marine mesopsammon, but also benthic lineages in brackish water, limnic habitats and (semi-)terrestrial environments. We present the first comprehensive molecular phylogeny on Acochlidia, based on a global sampling that covers nearly 85% of the described species diversity, and additionally, nearly doubles known diversity by undescribed taxa. Our phylogenetic hypotheses are highly congruent with previous morphological analyses and confirm all included recognized families and genera. We further establish an ancestral area chronogram for Acochlidia, document changes in diversification rates in their evolution via the birth-death-shift-model and reconstruct the ancestral states for major ecological traits. Based on our data, Acochlidia originated from a marine, mesopsammic ancestor adapted to tropical waters, in the mid Mesozoic Jurassic. We found that the two major subclades present a remarkably different evolutionary history. The Microhedylacea are morphologically highly-adapted to the marine mesopsammon. They show a circum-tropical distribution with several independent shifts to temperate and temperate cold-habitats, but remained in stunning morphological and ecological stasis since the late Mesozoic. Their evolutionary specialization, which includes a remarkable and potentially irreversible "meiofaunal syndrome", guaranteed long-term survival and locally high species densities but also resembles a dead-end road to morphological and ecological diversity. In contrast, the Hedylopsacea are characterized by morphological flexibility and ecologically by independent habitat shifts out of the marine mesopsammon, conquering (semi-)terrestrial and limnic habitats. Originating from interstitial ancestors with moderate adaptations to the mesopsammic world, they reestablished a benthic lifestyle and secondary "gigantism" in body size. The major radiations and habitat shifts in hedylopsacean families occured in the central Indo-West Pacific in the Paleogene. In the Western Atlantic only one enigmatic representative is known probably presenting a relict of a former pan-Tethys distribution of the clade. This study on acochlidian phylogeny and biogeography adds another facet of the yet complex panpulmonate evolution and shows the various parallel pathways in which these snails and slugs invaded non-marine habitats. Given the complex evolutionary history of Acochlidia, which represent only a small group of Panpulmonata, this study highlights the need to generate comprehensively-sampled species-level phylogenies to understand euthyneuran evolution.