They were once found across most of southern Australia, including the desert regions. Predation by the European fox is thought to be the main reason for their decline. Following fox control, new populations have been established in various nature reserves and forests. Monitoring and regular fox baiting are also carried out to protect existing populations at Perup and Dryandra and numbats are bred in captivity at Perth Zoo. A new colony was recently established in South Australia.
Wandoo woodland is prime habitat.
It has the highest concentrations of termites in the south-west and the trees drop many hollow branches, used by numbats as nest sites and refuges. They are also found in nearby powderbark woodland. At Perup, near Manjimup, they live in the jarrah forest, adapting well to areas that have been regenerated after timber harvesting. However, they once inhabited mulga woodland and other habitats, such as spinifex grasslands, in more arid areas. Unlike most other Australian marsupials, numbats are active during the day.