Orthocerid-like coleoids with mixed orthocerid-coleoid characteristics are described for the first time from the Carboniferous of USA. The appearance of these coleoids represents transitional morphology between the orthoconic nautiloid and coleoid lineages. This transitional state is based on the new genus Colorthoceras n. gen. with three assigned new species (C. inflata n. sp., C. tubulata n. sp. and C. concavus n. sp.) in the new family Colorthoceridae of the new order Colorthocerida. Orthocerid nautiloid characteristics include a longiconic phragmocone with a well-developed body chamber, and a central, sub-central or sub-ventral siphuncle with endosiphuncular deposits. The shell wall in the new order Colorthocerida is characterized by the coleoid characteristics of a lack of the nacreous layer, with a high content of chitin that created a somewhat semi-elastic shell. The connecting rings are uni-layered, directly continuous from the septal neck, and have a mixed chitinous-calcareous composition similar to that in order Mixosiphonata. The shell wall structure in these unique orthocerid-like coleoids is similar to that in the previously described Carboniferous bactritoid-like coleoids. The evolution of these coleoid characteristics appears to represent an unsuccessful evolutionary experiment, as the diversity of this nautiloid lineage was in gradual decline in the Upper Paleozoic.