In a scene straight from a science fiction horror movie — a tiny Australian town is under siege by a massive infestation of caterpillars that cause skin rashes.

The plague has even forced one resident to put on a full body suit every time she leaves the house.

Homes and backyards have been covered with millions of caterpillars for 18 months.

The species is a processionary caterpillar, which is a sub-species of the bag-shelter moth.

The caterpillar hairs cause skin irritations, can make dogs sick and have been linked to horse miscarriages.

Local resident Dallas Boothey says she has a dangerous allergy to the species that requires her to put on a full body suit every time she leaves the house.

"It's more than a plague, it's like living in a real life nightmare," Boothey said.

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