The common degu is a small animal with a body length of 25.0 to 31.0 cm (9.8–12.2 in) and a weight of 170 to 400 g (6.0 to 14.1 oz). It has yellow-brown fur above and creamy-yellow below, with yellow around the eyes and a paler band around the neck. It has a long, thin tail with a tufted, black tip, dark sparsely furred ears, and pale grey toes. Its fifth toe is small with a nail, rather than a claw, on the fore feet. Its hind feet are bristled. Its cheek teeth are shaped like figures-of-eight, hence the degu's genus name Octodon.

Common degus are highly social. They live in burrows, and, by digging communally, they are able to construct larger and more elaborate burrows than they could on their own. Degus digging together coordinate their activities, forming digging chains. Females living in the same group have been shown to spontaneously nest communally, they nurse one another's young. They spend a large amount of time on the surface, where they forage for food.