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Lepidoptera (the insect order comprising butterflies and moths) larvae are mostly herbivorous, with some species being insectivorous. Lots of animals eat the caterpillars because they are rich in protein, but some caterpillars have a chemical that is being investigated for potential medical applications. This chemical, contained in "urticating hairs", ranges in effect from mild irritation to dermatitis. Any predator that attempts to eat a caterpillar with an aggressive defence mechanism will learn and avoid future attempts.

Some caterpillars regurgitate acidic digestive juices at attacking enemies. Many papilionid larvae produce bad smells from extrudable glands called osmeteria.

Some caterpillars obtain protection for themselves by associating with ants.

The Lycaenid butterflies are particularly well known for this, communicating with their ant protectors by vibrations as well as chemical means. They actually provide the ants with food rewards.

Some caterpillars are gregarious; large aggregations are believed to help in reducing the levels of parasitization and predation.

Most caterpillars are solely herbivorous, but the Hawaiian caterpillars (Hyposmocoma molluscivora) use silk traps to capture snails. The silk industry is based on the silkworm caterpillar.

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