This is the first study of Australian blister beetle larvae. The first‐instar larva of one species of the endemic genus Palaestra Laporte de Castelnau, 1840, is described as well as those of other phoretic species without adult association and consequently unplaced to genus. Two main larval types (Groups 1 and 2) are recognised, as are distinct morphotypes within each group. Although both groups are assignable to the Nemognathinae, they are characterised by traits not paralleled by subfamily representatives from other regions of the world. Group 1, which includes Palaestra, is the more distinctive, whereas Group 2 shares most characteristics with members of the cosmopolitan tribe Nemognathini. A tabular comparison of larval groups and morphotypes is included.