Contrary to textbook dogma, nematodes are not only highly diverse, but often also complex and biologically specialized metazoans. Just a few of the many fascinating adaptations are reviewed in this chapter, as a prelude to a quick tour through phylogenetic relationships within the phylum. Small Subunit rDNA sequences have confirmed several controversial prior hypotheses, as well as revealing some unexpected relationships, resulting in a recent proposal for revised classification. Three major lineages exist within the phylum: Chromadoria, Enoplia and Dorylaimia. The exact order of appearance of these lineages is not yet resolved, which also leaves room for uncertainty about the biology and morphology of the exclusive common ancestor of nematodes. Enoplia and Dorylaimia differ considerably in many respects from C. elegans, which is a member of Chromadoria. The latter group is extremely diverse in its own right, for example in ecological range, in properties of the cuticle and in structure of the pharynx. The formerly relatively widely accepted class Secernentea is deeply nested within Chromadoria, and has therefore recently been relegated to the rank and name of order Rhabditida. Within this order, closer relatives of C. elegans include strongylids, diplogasterids and bunonematids. Tylenchs, cephalobs and panagrolaimids are also members of Rhabditida, albeit probably more distantly related to C. elegans.