Palaeoannelida Weigert and Bleidorn, 2016 is an old clade branching off at the base of the Annelida radiation. It includes two morphologically and ecological divergent groups of sedentary burrowers and tube-dwellers: Magelonidae Cunningham and Ramage, 1888, and Oweniidae Rioja, 1917. Magelonids are characterised by a flattened, shovel-shaped prostomium and a pair of ventral papillated palps. Oweniids have simplified bodies lacking parapodia or appendages and are easily distinguished by the presence of oval patches of packed uncini, each with two distal curved teeth. The present review aims to summarise available information about the diversity of forms and life strategies displayed in the group, providing some guidelines for species identification and the techniques commonly used for their study. In addition, the assumed geographic distributions of some taxa are critically discussed. A brief introduction about the evolutionary relationships, systematics, and taxonomic history is given for both Magelonidae and Oweniidae. The motivation of this review is to highlight the main knowledge gaps from a taxonomic, methodological, and geographic perspective, aiming at stimulating further research into members of this clade.