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Koalas live in southeastern and eastern Australia â in the states of Queensland, new South Wales, South Australia and Victoria â in the eucalyptus forests and woodlands. They live in eucalyptus trees and spend most of their time wedged between forks in the tree's branches. Koalas eat in the trees, sleep in trees and hang out in trees. The only time they leave the trees is to walk to another tree with a better food supply. Koalas do move around in their chosen tree. When they need to cool down, they find the shadiest spot of the tree to rest.
Koalas are found all along the eastern coast of Australia from near Adelaide to the base of the Cape York Peninsula, and as far into the hinterland as there is enough rainfall to support suitable forest. The word koala comes from the aboriginal word meaning does not drink.