One individual was seen taking a sun bath, lying spread-eagle on a fallen tree trunk. Most observers state that Hypsiprymnodon runs on all four limbs instead of hopping on its hind feet. At night, and in the middle of the day, the musky rat-kangaroo sleeps in a nest in a clump of vines or between the plank buttresses of a large tree. The diet is different from that of other rat-kangaroos. This animal sits on its haunches while eating.
Food is obtained by turning over debris and by digging.
They leave the pouch after about 21 weeks, and then for several more weeks they spend a considerable part of the day in the nest. Females attain sexual maturity when slightly more than a year old. The range of the musky rat-kangaroo has been affected by clearing of rainforest for agricultural development.