Lively is rat-free but with a century and a half of grazing little tussac grass remains and there are many large patches of eroded ground.

Habitat restoration work has been started by the current owners by planting tussac and sandgrass on eroded areas.

[1] North East Island which is just 350 metres (380 yd)[1] off the coast of Lively, was the site of a rat eradication programme in 2003.

The Lively Island group has been identified by BirdLife International as an Important Bird Area.

Birds for which the site is of conservation significance include Falkland steamer ducks, ruddy-headed geese, gentoo penguins (650 breeding pairs), Magellanic penguins, southern giant petrels (40 pairs), white-bridled finches, blackish cinclodes and Cobb's wrens.