It is known from a single species, Halazhaisuchus qiaoensis, which was named in 1982 from the lower Ermaying Formation in Shaanxi.

Halazhaisuchus is known from a single holotype specimen called V6027, which was discovered in 1977 and includes a portion of the vertebral column, some ribs, two scapulae and two humeri, the right radius and ulna, and a left coracoid.

When it was first described in 1982, Halazhaisuchus was considered a close relative of Euparkeria because it has primitive features like small intercentra bones between the vertebrae and a large coracoid, not seen in later archosaurs.

[2] The fauna of the lower Ermaying Formation closely resemble those of the Cynognathus Assemblage Zone in South Africa.

Halazhaisuchus is similar to Euparkeria, while the Chinese Parakannemeyeria and Guchengosuchus resemble the South African Kannemeyeria and Erythrosuchus, respectively.