Good thing I left it where it is, if it's what I think it is:
braconid wasp cocoons...

Braconids parasitize insects. They don't lay eggs on plant material.

If you're interested in learning what it is, I suggest you "cage" it by enclosing it with a sheer fabric such as bridal tulle, then check periodically to see what develops/hatches.

Oh yes, and let us know too.

I found out what it is on bugguide:
http://bugguide.net/node/view/615478/bgimage
And they say under neath is the caterpillar, you just don't see it anymore, since it's covered with the cocoons from the wasps. And yes, I do have that large caterpillars eating my papaya leaves.

While I am not sure what this is I am fairly sure it is not and egg case of a Braconid Wasp.
Is this an egg case or a cocoon?
Is this the larva of a beneficial or a pest?

Here is a link that might be useful: About Braconid Wasps

The text on the bugguide page clearly states that they are braconid cocoons. One image there shows an end view. The cocoons are in the fuzzy stuff surrounding the dead caterpillar.

God detective work. Thanks.

BTW, where do you live?

There are also other images of this oddity to be found on the internet. Very cool!

jean001a, I live in South Florida. And I'm glad that I didn't destroy this when I found it first, I just thought another pest to devour my papaya leaves....

I live I with florida and my papayas have those too looks like som type of spider eggs. I'll see what type of alien 👽 hatch out of that 😁

I spotted some on my Papaya tree this morning. I have never seen them before, but I have seen caterpillars on the tree. My two trees are in their early statges of growth. Should I just let them be? I live in S. Florida as well.

Thank you for your quick response. We will just admire them:)

Oh u saw it this am and thought Neem oil spray? Looks so odd I have two papaya trees only one has two of these cocoons. Leaving it for gardener.