Operation Leo, carried out in three caves on the Nullabor Plain, unearthed Australia's first complete skeleton of a giant marsupial lion - Leo - as well as the world's biggest kangaroo and a wombat the size of a small car.
Palaeontologist John Long from the Western Australian Museum in Perth described the fossils as "the find of the century".
The animals bones have lain entombed for an estimated 1.5 million years.
Perfect condition
Mr Long and his 14-member team found the fossils during a two-week dig after the site was originally discovered in May.
Alongside Leo lay six partial skeletons of fellow giant lions - characterised by their deadly front teeth and retractable claws - which the scientists believe were used for disembowelling animals.
Mr Long said the bones were found in perfect condition.
"This is a unique situation where the caves must have been sealed off shortly after the animals were trapped and died so we've got these ancient animals in a perfectly undisturbed and complete state," he told the French news agency AFP.
'Tip of the iceberg'
Mr Long said the discovery revealed how modern animals evolved from some of the most specialised creatures on earth.
And he said it has given scientists a unique insight into prehistoric life in the region.
"It tells us what the Pleistocene period was like in Australia from 1.8 million to 10,000 years ago," he told the Sydney Morning Herald.
"But it's the tip of the iceberg as to what we hope to find in future expeditions."
He said it was still unclear what drove the animals to extinction.
He said one of the theories was that they disappeared with the arrival of humans about 60,000 years ago, while others blamed climate and vegetation changes for their extinction.