The invention provides a sensor-guided, automated system that is capable of intelligently cutting crustaceans, such as crab and lobster, into a plurality of portions, as directed. More particularly, the present system is capable of effectively butchering each individual crustacean in response to how the system's sensor(s) assess the physical characteristics of each crustacean as it arrives via a conveyor belt. The system generally comprises: an intake apparatus for receiving a crustacean; a sensor-guided positioning (“SGP”) system for determining the presence, location, orientation and size of the crustacean on the intake apparatus, coupling the crustacean, and placing the crustacean into a holding system for butchering; a holding system for retaining the crustacean in an optimal fixed position for butchering; a sensor-guided butchering (“SGB”) system for determining the locations on a crustacean body to be cut based on the desired output of crustacean portions, and cutting the crustacean at the chosen locations to produce optimal crustacean products; and an outlet apparatus which discharges the butchered crustacean from the system for subsequent packaging.