Major threats to Burramys parvus include habitat loss and disturbance due to development for snow-field recreation, access roads and tracks; predation by foxes and possibly dogs and feral cats; possible reduction of its major food source, the Bogong Moth, and climate change.
The only Australian mammal that is restricted to alpine and sub- alpine habitats and hibernates during winter. The possum's diet consists mainly of invertebrates, seeds and berries. Distributed in Alpine and sub-alpine areas of the Alpine National Park (Victoria) and Kosciuszko National Park (New South Wales), Australia. The Mountain Pygmy Possum is restricted to a few, isolated, alpine and sub-alpine areas where there are large granite boulders covered with Mountain Plum-pine and other shrubs. They feed on bogong moths and plant material. Further research on its habitat requirements and the effects of ski slope grooming on its survival over winter and the long term is necessary.
Burramys parvus is considered as "Endangered" by the IUCN.