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Koalas are marsupials, related to kangaroos. Most marsupials have pouches where the tiny newborns develop.
They rarely leave these trees and when not asleep a koala feeds on eucalyptus leaves, especially at night. They do not drink much water and they get most of their moisture from these leavesCheck Answer
The joey feeds on this in addition to the milk it's already getting. Pap comes from the mother's intestines and contains bacteria that the joey needs to have in its own intestines so that it can digest an adult diet of eucalyptus leaves.