The mother produces a green dropping or pap. The baby eats this dropping which is partly digested food. Koalas do not lay eggs. Koala's are found in the eastern and southern areas of Australia. They are found all the way down from Cairns in Northern Queensland, and along the eastern side of the Great Dividing Range.
Koalas live above ground.
In winter they stay in the same tree. The Koala is protected by law, but it was not always so. As recently as the 1970s it was hunted and killed for its thick fur and came very close to being wiped out completely. A lot of the trees that they need have been cut down. People have been planting new plants and making laws to protect the Koala.