Status attained when a girl will not respond to your sexual advances because she is your cousin.
I met this pretty girl at the family reunion, but I messed around and ended up in the cousin zone.
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Similar to friend zone, one may find themselves in this dire predicament when a flirtatious attempt with another is ended abruptly due to them exclaiming something along the lines of 'but we're cousins!' or 'you're my cousin!'.
(After yearly family gathering)
Cletus: Goddam it Travis, it was going real gooood
Travis: Why, she didn't cousin zone you did she?
Cletus: You're darn right she did
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