Digital communication has become a fundamental part of our daily interactions and professional pursuits. An increasing number of online interaction settings now provide the possibility to visually represent oneself via an animated avatar instead of a video stream. Benefits include protecting the communicator's privacy while still providing a means to express their individuality. In consequence, there has been a surge in means for avatar-based personalization, ranging from classic human representations to animals, food items, and more. However, using avatars also has drawbacks. Depending on the human-likeness of the avatar and the corresponding disparities between the avatar and the original expresser, avatars may elicit discomfort or even hinder effective nonverbal communication by distorting emotion perception. This study examines the relationship between the human-likeness of virtual avatars and emotion perception for Ekman's six “basic emotions,” which are anger, disgust, fear, happiness, sadness, and surprise. Research reveals that avatars with varying degrees of human-likeness have distinct effects on emotion perception. High human-likeness avatars, such as human avatars, tend to elicit more negative emotional responses from users, a phenomenon that is consistent with the concept of Un-canny Valley in aesthetics, which suggests that closely resembling humans can provoke negative emotional responses. Conversely, a raccoon avatar and a shark avatar, known as cuteness, which exhibit moderate human similarity in this study, demonstrate a positive influence on emotion perception. Our initial results suggest that the human-likeness of avatars is an important factor for emotion perception. The results from the follow-up study further suggest that the cuteness of avatars and their natural facial status may also play a significant role in emotion perception and elicitation. We discuss practical implications for strategically conveying specific human behavioral messages through avatars in multiple applications, such as business and counseling.