Enchytraeidae is the second largest family of the annelid class Clitellata, with nearly 650 species in 32 genera having been recognized up to now. These small but pretty potworms are almost cosmopolitan, being distributed in all major habitats including soils, oceans, fresh water, estuaries and glaciers, but with the majority of species being terrestrial (ca. 500) or marine (ca. 100). In spite of the long duration (over 200 years) of enchytraeid taxonomic investigation, the Enchytraeidae is still one of the most poorly-understood group of clitellates. Here, we provide an overview of the state of taxonomy and phylogenetics of the Enchytraeidae, then characterize its key morphological traits for enchytraeid identification, determine its main taxonomic problems and impediments, and provide future taxonomic and systematic perspectives. Firstly, enchytraeid systematics is still at its initial stage (α taxonomy). This stage mainly concentrates on species exploration and validation. These species identification processes have been carried out through morphological analysis and consideration of the biological species concept. However, the high interspecific and/or intraspecific diversity of these traits, most of which are only observed and recorded in live condition, adds difficulty to enchytraeid identifications. Moreover, reproduction isolation of enchytraeids has rarely been tested, thus the hypothesis of established enchytraeid species in the biological species concept can not be confirmed. Second, phylogenetic studies of Enchytraeidae based on morphological-and-molecular data suggest that most of the enchytraeid genera are polyphyletic, indicating the established taxonomic systems yet do not genuinely reflect their evolutionary history. Thirdly, enchytraeid taxonomy faces such taxonomic problems and impediments as accelerating species exploration and testifying species validity, the establishment of genera/species definitions that reflect their real phylogenetic relationships, the application of DNA taxonomy to enchytraeid identification and reconstruction of intra-family phylogenies. Other impediments also constrain the develepment of enchytraeid taxonomy, such as the species-exploration imbalance across different regions of the world, the scarcity of funds and talented experts and the deficiency of electronically available taxonomic resources. Finally, we maintain that the application of both molecular data and the phylogenetic species concept should be the future direction of the enchytraeid taxonomy and systematics. Through reading the information stored in genes (such as COI gene), we can reconstruct the evolutionary history of enchytraeid ancestor struggling with their palaeoenvironment and the key processes and driving forces that enchytraeid ancestor had inherited their merit properties to their descendants. An enchytraeid taxonomic system based on the phylogenetic species concept should be tested and verified, e.g., by testing for reproductive isolation. Moreover, it is an important duty that enchytraeid experts disseminate advanced enchytraeid taxonomic knowledge to the public that can promote such enchytraeid-related research and recognitions of their roles in the processes of soil decomposition and nutrient mineralization, assessing soil ecosystem health condition, and evaluating global climate change.