A hug employing both arms and legs. Usually Affectionate. Sometimes Awkward.
"I love when I wake up in the middle of the night because you're koala hugging me."

"Uh. That bitch koala hugged me in the middle of the classroom. It was awkward."
by mrscapernicous September 21, 2009
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When a person wraps their limbs around their significant other while penetrating them from behind during sexual intercourse, while also speaking to them in an Australian accent
Person 1: Dude last night was amazing, I did the Australian Koala Hug on my girl and she was totally into it

Person 2: No way bro!
by SapphireQueen42 September 01, 2017
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When one person, usually the girl, wraps their legs around the hips of the guy.
by lithpingithfun February 08, 2017
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