We propose a new type of ultimate-Shannon-limit-approaching codes called spatially coupled protograph-based low-density parity-check Hadamard convolutional codes (SC-PLDPCH-CCs), which are constructed by spatially coupling PLDPC-Hadamard block codes. We develop an efficient decoding algorithm that combines pipeline decoding and layered scheduling for the decoding of SC-PLDPCH-CCs, and analyze the latency and complexity of the decoder. To estimate the decoding thresholds of SC-PLDPCH-CCs, we first propose a layered protograph extrinsic information transfer (PEXIT) algorithm to evaluate the thresholds of spatially coupled PLDPC-Hadamard terminated codes (SC-PLDPCH-TDCs) with a moderate coupling length. With the use of the proposed layered PEXIT method, we develop a genetic algorithm to find good SC-PLDPCH-TDCs in a systematic way. Then we extend the coupling length of these SC-PLDPCH-TDCs to form good SC-PLDPCH-CCs. Results show that our constructed SC-PLDPCH-CCs can achieve comparable thresholds to the block code counterparts. Simulations illustrate the superiority of the SC-PLDPCH-CCs over the block code counterparts and other state-ofthe-art low-rate codes in terms of error performance. For the rate-0.00295 SC-PLDPCH-CC, a bit error rate of 10 −5 is achieved at E b /N 0 = −1.465 dB, which is only 0.125 dB from the ultimate Shannon limit.