Conservation of Red Panda a global issue. This study on Red Panda is believed to provide some information regarding the habitat characteristics and threats for it on the site which would contribute for the conservation. Probable distribution of red panda and their threats were identified through informal discussions and scheduled interview with key- informants and the local people.Droopings survey and habitat survey was conducted simultaneously to find the abundance indices and to describe its habitat characteristics in Nache forest. Square plots of 10m×10m, 4m × 4m, and 1m × 1m were laid out to sample vegetation (trees, shrubs, and herbs respectively) along six transects along contour lines between elevations 3200m and 4200m with an altitudinal interval of 200m and the plots were spaced by 100m. Red panda habitats are characterized by the mixed broad-leaved forest with bamboo under storey. The red panda habitats are dominated by Betula utilis with Rhododendron species, Pinus wallichiana, Cupressus torulosa and Abies spectabilies. The major causes for the population decrease in Tilche and Nache forest are habitat destruction, forest fir , forest fire, predation and poaching.