Pancrustacea is the clade that comprises all crustaceans and all hexapods (insects and relatives). This grouping is contrary to the Atelocerata hypothesis, in which Hexapoda and Myriapoda are sister taxa, and Crustacea are only more distantly related. As of 2010, the Pancrustacea taxon was considered well accepted, with most studies recovering Hexapoda within Crustacea. The clade has also been called Tetraconata, referring to having a four-part cone in the ommatidium. The term "Tetraconata" is preferred by some scientists in order to avoid confusion with the use of "pan-" to indicate a clade that includes a crown group and all of its stem group representatives.

A monophyletic Pancrustacea has been supported by several molecular studies, in most of which the subphylum Crustacea is paraphyletic with regard to hexapods (that is, that hexapods, including insects, are derived from crustacean ancestors). This means that within Pancrustacea, only some members are actually crustaceans, hexapods being the main exception.

The evidence for this clade derives from molecular data and morphological characteristics. The molecular data consists of comparisons of nuclear ribosomal RNA genes, mitochondrial ribosomal RNA genes, and protein coding genes. The morphological data consists of ommatidial structures (see arthropod eye), the presence of neuroblasts, and the form and style of axonogenesis by pioneer neurons.

In a 2005 study of nuclear genomes Regier et al. suggest that Hexapoda is most closely related to Branchiopoda and Cephalocarida + Remipedia, thereby hexapods are "terrestrial crustaceans", thus supporting the Pancrustacea hypothesis that maxillopods are not monophyletic (in the following cladograms Maxillopoda subclasses are highlighted). In addition, there appeared some evidence against the Ostracoda monophyly: that Ostracoda subclass Podocopa may form a clade with Branchiura.

A 2010 study of nuclear genomes (Regier et al.) strongly supports Pancrustacea and strongly favour Mandibulata (Myriapoda + Pancrustacea) over Paradoxopoda (Myriapoda + Chelicerata). According to this study, Pancrustacea is divided into four lineages: Oligostraca (Ostracoda, Mystacocarida, Branchiura, Pentastomida), Vericrustacea (Malacostraca, Thecostraca, Copepoda, Branchiopoda), Xenocarida (Cephalocarida, Remipedia) and Hexapoda, with Xenocarida as a sister group to the Hexapoda (comprising "Miracrustacea").

New clades proposed by Regier et al. are:

Of these proposed clades, only Multicrustacea was confirmed in later molecular studies.

In a 2012 molecular study, von Reumont et al. challenge the monophyly of Vericrustacea: they present four versions of Pancrustacea cladogram (figures 1–4), and in all four figures Remipedia is a sister group to Hexapoda, and Branchiopoda is a sister group to (Remipedia + Hexapoda). Thus, their data strongly suggest that Branchiopoda is more closely related to Hexapoda and Remipedia than to Multicrustacea. Based on these data, they propose the following scenario of evolution of Branchiopoda, Remipedia and Hexapoda: under the impact of predatory fishes their common ancestors go to the littoral zone, then ancestors of Branchiopoda go to the ephemeral freshwater habitat, whereas ancestors of Remipedia go to the anchialine cave, and ancestors of Hexapoda go to the land.