Hazard reduction burns could pose a significant conservation challenge to threatened habitat specialists, such as koalas Phascolarctos cinereus. This study examines the immediate effects of a medium to hot hazard reduction burn on a small number of koalas occupying a fragmented agricultural area. Three koalas being monitored using GPS telemetry were inadvertently exposed to fire in a small strip of roadside vegetation in an agricultural landscape, providing an unexpected opportunity to assess their immediate responses to the fire. Nearly 81% of available trees were burnt to some degree, with 31% of tree foliage scorched up to 10.2m above the ground. The koalas reduced their home range sizes by 20–54% post-fire, where two avoided burnt areas while one remained within them. These findings highlight the importance of maintaining unburnt patches and corridors in fragmented landscapes and developing comprehensive conservation plans to mitigate the adverse effects of fire on koalas and other arboreal fauna.