The study led by a University of Adelaide scientist has shown how massive, meat-eating, ground-dwelling dinosaurs - the theropods - evolved into agile flyers: they just kept shrinking and shrinking.
The researchers present a detailed family tree of these dinosaurs and their bird descendants which maps out this unlikely transformation.
They showed that the branch of theropod dinosaurs which gave rise to modern birds were the only dinosaurs that kept getting inexorably smaller.
These bird ancestors also evolved new adaptations such as feathers, wishbones and wings four times faster than other dinosaurs.
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"Being smaller and lighter in the land of giants, with rapidly evolving anatomical adaptations, provided these bird ancestors with new ecological opportunities, such as the ability to climb trees, glide and fly.
"Ultimately, this evolutionary flexibility helped birds survive the deadly meteorite impact which killed off all their dinosaurian cousins," said Lee.
The study examined over 1500 anatomical traits of dinosaurs to reconstruct their family tree.
"Studies of bipedal carnivorous dinosaurs - such as Tyrannosaurus rex and Velociraptor - keep finding more and more bird-like traits, such as feathers, wishbones, hollow skeletons and a three-fingered hand," said Lee.
The study concluded that the branch of dinosaurs leading to birds was more evolutionary innovative than other dinosaur lineages.
"Birds out-shrank and out-evolved their dinosaurian ancestors, surviving where their larger, less evolvable relatives could not," said Lee.
The study was published in the journal Science.