Caterpillar Caterpillar depicts the caterpillar/butterfly life cycle in a fun way for children. The caterpillar starts as an egg, hatches, and lives the life of a caterpillar. The caterpillar gets busy making its chrysalis and goes inside to sleep and metamorphosize. From the chrysalis, a beautiful butterfly emerges and lives out her butterfly life. She lays her eggs, and the caterpillar/butterfly life cycle continues.