The Kangaroo Island dunnart is listed as Critically Endangered by International Union for Conservation of Nature (IUCN).

All are either in the Flinders Chase National Park or the Ravine des Casoars Wilderness Protection Area, both on the western part of the island.

[5] As recently as the early 2000s, the wildlife research community was uncertain as to whether the species population in the wild was actually so low, or whether they were just particularly well concealed.

The eastern portion of Kangaroo Island has been largely converted from the natural habitat for agricultural and grazing purposes.

Also, tree dieback caused by Phytophthora cinnamomi, a water mould, has also affected Kangaroo Island dunnart populations.

[7] In May 2019, months prior to the start of the 2019–2020 bushfires, a workshop on the status of the dunnart was held on Kangaroo Island that included government representatives as well as scientists and landowners.

The minutes from that meeting provided considerable information on the Kangaroo Island dunnart's status prior to the bushfires.

[8] The population was devastated by the bushfires, which likely wiped out a majority of the individuals; however, dunnarts have still been sighted in burnt and unburnt areas following the fires, raising hopes for recovery.