It might look cute and cuddly, and if you see one in your yard, which is not uncommon if you live in the mid-Atlantic through the South East, do NOT touch it. Stay away!
It’s called the “puss caterpillar” and the puss is actually poison. All that brown fur that looks like it should be on a rabbit? It’s actually a collection of spikes!
If you touch it, you will feel a sting like a bee sting, but much more painful. And it gets worse with time, as the venom takes hold. In time, you’ll actually feel it down in your bones, beneath the affected area.