Together with the fur seals, they constitute the family Otariidae, collectively known as eared seals. Until recently, sea lions were grouped under a single subfamily called Otariinae, whereas fur seals were grouped in the subfamily Arcocephalinae. This division was based on the most prominent common feature shared by the fur seals and absent in the sea lions, namely the dense underfur characteristic of the former. Recent genetic evidence, suggests Callorhinus, the genus of the northern fur seal, is more closely related to some sea lion species than to the other fur seal genus, Arctocephalus. Therefore, the fur seal/sea lion subfamily distinction has been eliminated from many taxonomies.
Sea lions are related to the walrus and the seal. Nonetheless, all fur seals have certain features in common: the fur, generally smaller sizes, farther and longer foraging trips, smaller and more abundant prey items, and greater sexual dimorphism. All sea lions have certain features in common, in particular their coarse, short fur, greater bulk, and larger prey than fur seals. For these reasons, the distinction remains useful. The family Otariidae (Order Carnivora) contains the 14 extant species of fur seals and sea lions. Traditional classification of the family into the subfamilies Arctocephalinae (fur seals) and Otariinae (sea lions) is not supported, with the fur seal Callorhinus ursinus having a basal relationship relative to the rest of the family. This is consistent with the fossil record which suggests that this genus diverged from the line leading to the remaining fur seals and sea lions about 6 million years ago (mya). Similar genetic divergences between the sea lion clades as well as between the major Arctocephalus fur seal clades, suggest that these groups underwent periods of rapid radiation at about the time they diverged from each other. The phylogenetic relationships within the family and the genetic distances among some taxa highlight inconsistencies in the current taxonomic classification of the family.
Arctocephalus is characterized by ancestral character states such as dense underfur and the presence of double rooted cheek teeth and is thus thought to represent the most "primitive" line. It was from this basal line that both the sea lions and the remaining fur seal genus, Callorhinus, are thought to have diverged. The fossil record from the western coast of North America presents evidence for the divergence of Callorhinus about 6 mya, whereas fossils in both California and Japan suggest that sea lions did not diverge until years later.