Three-toed sloths are endangered because of the deforestation of the rainforests, which are the sloths' natural habitat. The three-toed sloth depends upon the rainforests of Central and South America for protection and food. Destruction of the rainforests has made the three-toed sloth extremely endangered and increased the vulnerability of the maned sloth.
Three-toed sloths use the rainforests as camouflage to protect against predators. With the destruction of the forests, sloths have fewer places to hide and fewer food sources. When a sloth leaves the protection of the trees and goes down to the forest floor, a lack of foliage makes the sloth vulnerable to predators, which reduces the number of sloths.