Can anyone help identify this little creature? It was found in Gulf Shores, Al., USA. Approx. size 2-3 inches (5-7,5 cm)
This is a caterpillar of a moth from the Genus Megalopyge.
Here is another picture for comparison (the species here is M. opercularis, also known as "puss caterpillar"):
And here is an imago (adult), also M. opercularis: