The genus and species Yuyuanozoon magnificissimi gen. et sp. nov., a new fossil vetulicolian, is reported from the Early Cambrian Chengjiang Fauna in Yunnan of China. It has a bipartite body plan and five pairs of chain-formed gill sacs, showing the general characteristics of Ventulicolia. However, the exclusive "atrial cavity" and external gill observed indicate that the new form is different from those previously described as vetulicolians, probably representing a lineage developed within deuterostomes and more primitive than urochordates.