A new palaeoscolecid, Guanduscolex minor Hu, Luo et Fu gen. et sp. nov., with preserved soft parts of introvert and intestines comes from the Lower Cambrian Guanshan fauna of Yunnan, South China. Microstructural details of the cuticle revealed by scanning electron microscopy (SEM) show that each annulation bears three rows of plates and each plate bears 9–10 marginal and 4–5 central nodes. This discovery sheds new light on the relationships and evolutionary pathway of the palaeoscolecids and other early priapulids.