ABSTRACTMost species of caterpillar move around by inching or crawling. Their ability to navigate in branching three‐dimensional structures makes them particularly interesting biomechanical subjects. The mechanism of inching has not been investigated in detail, but crawling is now well understood from studies on caterpillar neural activity, dynamics and structural mechanics. Early papers describe caterpillar crawling as legged peristalsis, but recent work suggests that caterpillars use a tension‐based mechanism that helps them to exploit arboreal niches. Caterpillars are not obligate hydrostats but instead use their strong grip to the substrate to transmit forces, in effect using their environment as a skeleton. In addition, the gut which accounts for a substantial part of the caterpillar's weight, moves independently of the body wall during locomotion and may contribute to crawling dynamics. Work‐loop analysis of caterpillar muscles shows that they are likely to act both as actuators and energy dissipaters during crawling. Because caterpillar tissues are pseudo‐elastic, and locomotion involves large body deformations, moving is energetically inefficient. Possession of a soft body benefits caterpillars by allowing them to grow quickly and to access remote food sources safely.