This study examined the coarse- and fine-scale habitat preferences of the long-nosed potoroo (Potorous tridactylus) in the Southern Highlands of New South Wales, in order to inform the management of this threatened species. Live-trapping was conducted in autumn and spring, from 2005 to 2008, at two sites. Macrohabitat preferences were examined by comparing trap success with numerous habitat attributes at each trap site. In spring 2007 and autumn 2008, microhabitat use was also examined, using the spool-and-line technique and forage digging assessments. While potoroos were trapped in a wide range of macrohabitats, they displayed some preference for greater canopy and shrub cover, and ground cover with lower floristic diversity. While most individuals also displayed preferences for various microhabitat attributes, no clear trends were evident across all individuals. Potoroos displayed some foraging preference for microhabitats with higher shrub cover densities and more open ground cover. Despite extensive fox predation risks, individual potoroos did not all preferentially utilise dense ground cover. Future management of known and potential potoroo habitat should aim to provide effective introduced predator control and enhance the diversity of vegetation attributes while avoiding practices that simplify the habitat.