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A sugar glider lives in forests, especially eucalyptus and acacia forests.They prefer rainforests and bushland (both wet and dry sclerophyll forest). They can adapt to cool-temperate climates, such as that found in the Tasmanian bushland, and warmer, humid bushland and rainforests of northern Australia. They are healthiest in drier eucalyptus bushland rather than moist rainforest. They prefer areas where there is a variety of Eucalypt species, and an understorey of acacias or wattles.

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