The study found that Purgatorius, a small mammal that lived on a diet of fruit and insects, was a tree dweller.
Paleontologists made the discovery by analysing 65-million-year-old ankle bones collected from sites in northeastern Montana.
Purgatorius, part of an extinct group of primates called plesiadapiforms, first appears in the fossil record shortly after the extinction of non-avian dinosaurs.
Some researchers have speculated over the years that primitive plesiadapiforms were terrestrial, and that primates moved into the tree canopy later. These ideas can still be found in some textbooks today.
Also Read
Chester, who conducted much of the research while at Yale University studying for his PhD, is an assistant professor at Brooklyn College, City University of New York.
Until now, paleontologists had only the animal's teeth and jaws to examine, which left much of its appearance and behaviour a mystery.
"The ankle bones have diagnostic features for mobility that are only present in those of primates and their close relatives today," Chester said.
"These unique features would have allowed an animal such as Purgatorius to rotate and adjust its feet accordingly to grab branches while moving through trees.
"In contrast, ground-dwelling mammals lack these features and are better suited for propelling themselves forward in a more restricted, fore-and-aft motion," said Chester.
The research provides the oldest fossil evidence to date that arboreality played a key role in primate evolution.
The research appears in the journal PNAS.