Question
I thought it was a cacoon on my lime tree;but a closer view proved it was looking back at me.This catapillar was light&dark gray color, it also had orange tenicles that came out of its mouth when my husband touched it. I've never seen one like it;we would like to know about it.
Thank you,
Cheryl Barrickman
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Answer
I thimk this is an Orange Dog Caterpillar.

Orange dog caterpillars feed on citrus. They are mottled dark grey to light brown, and are said to look like "bird droppings." If disturbed, two orange, horn-like projections emerge from the head and the caterpillar produces a pungent lemony odor. When mature the caterpillar is about 1 1/2 inch long. The adult is beautiful black and yellow butterfly called the giant swallowtail.
Orange dogs are potentially harmful to young trees only, older trees can easily withstand the loss of a few leaves. Orange dogs can be controlled on small trees by finding and crushing eggs and caterpillars. Most are controlled naturally by parasites and other natural enemies.
Here is a picture froma web link:
http://bugguide.net/node/view/20027