A field-validated metapopulation model of patch occupancy was used to examine the persistence of greater gliders (Petauroides volans) in patches of remnant native eucalypt forest in south-eastern Australia. The model was based on a system of eucalypt patches embedded within a plantation forest of exotic radiata pine (Pinus radiata) at Buccleuch State Forest, New South Wales. The probability of local extinction in occupied patches was a function of patch size. The probability of colonization of empty patches was a function of the size and proximity of occupied patches. The results of the simulations suggested that suitable habitat should occupy approximately 10% (or more) of the total landscape to ensure the persistence of greater gliders. Rates of patch occupancy were maximized when suitable habitat was clustered into larger patches. Patches <3 ha in area were predicted to be of limited value as habitat for greater gliders. The predictions of the model are consistent with the observed persistence of greater gliders in the eucalypt patch system. The system of unlogged eucalypt patches within the pine plantation is a useful model of a network of small to medium-sized conservation reserves. Principles of reserve design can have value even in somewhat degraded and highly modified landscapes. The results demonstrate that reserved patches of native forest embedded within intensively logged forest can have significant conservation value, with important implications for the design and establishment of new softwood plantations.