Koalas live in the eucalypt forests and woodlands of eastern Australia, and they are seen on some islands off the southern and eastern coasts of the country. Koalas are native to New South Wales, Queensland, Victoria and South Australia.
The koala's habitat is determined by its food preferences; koalas only eat the leaves of eucalypt trees. Except for breeding, koalas stay in a group of trees called a home range. A male koala marks his territory with a dark, sticky substance he excretes from his chest. Habitat loss is the greatest threat koalas face, due to land clearing, bush fires and eucalypt tree disease.