The Huon Tree Kangaroo is found in tropical montane and upper montane forests between 1000 and 3300 m asl. A recent study of the ranging behaviour of 15 individuals in upper montane forests (circa 3000 m asl) in the YUS Conservation Area found home range area was an average of 139.6 ±26.5 ha, with no difference between males and females. These home ranges are 40-100 times larger than those of Australian tree kangaroos or other rainforest macropods, possibly because of greater hunting impacts reducing density in PNG, and/or because of the comparatively much lower productivity of their high altitude habitat (Porolak et al. 2014). The study found limited overlap of core ranges between neighbouring females, but unlike the Australian species, extensive overlap between females at their whole range. Males overlapped each other and females to a greater extent than did pairs of females.

In captivity, females have a gestation period of about 44 days (Heath et al. 1990); in captivity the young permanently leave the pouch by about 41 weeks (Dabek 1994).

This species is restricted to the high elevations of the Huon Peninsula on the island of New Guinea, Papua New Guinea. There is a population present on the island of Umboi, Papua New Guinea, but this is "almost certainly introduced" (Flannery 1995a), and although this population is mapped it is not considered for the purposes of listing. It has been recorded between 1,000 and 3,300 m asl. The extent of occurrence is less than 14,000 km².

The Huon Tree Kangaroo is a flagship species and the original reason for the establishment of the YUS Conservation Area. The YUS Conservation Area on the Huon Peninsula is named for its three main rivers - Yopno, Uruwa and Som - and covers 76,000 hectares of tropical forest from Papua New Guinea's northern coast to its interior mountains. It is Papua New Guinea’s first conservation area established under the 1978 Conservation Areas Act. The protected area is a community-based conservation area established in partnership with the Tree Kangaroo Conservation Program (TKCP) – a local NGO. The area is managed by the local community with the aid of TKCP according to the YUS Landscape Management Plan. As part of the plan, the YUS Ecological Monitoring Program was established to monitor trends in the status of several focal game species in the YUS Conservation Area. As noted under 'Population', there is evidence for stabilization of decline and possible increase of Huon Tree Kangaroos in no-take zones within the YUS CA.