Populations of Gouldian Finch Erythrura gouldiae, an estrildid endemic to northern Australia, declined markedly during the last two or three decades. A survey revealed the species in two areas of Northern Territory, with an estimated 2,000 individuals, including juveniles. Recaptures were low either because of mortality or dispersal. Gouldian Finches eat predominantly Sorghum spp. seeds, but consume other seeds before Sorghum ripens. Other finches declined as cattle increased. Gouldian Finches breed in tree hollows of predominantly two species of eucalypts that grow on rocky slopes. They require water within about 4 km of the nest site. There was no shortage of nesting hollows at the known breeding sites. Fires in the early to mid-dry season allow birds access to seed without damaging trees, but later fires can destroy trees with nest hollows and remove shade. Average clutch-size is 5.2. About 72% of eggs laid, and 63% of nests, fledged young. Pairs lay up to three clutches in a season (February-August), the length of which may depend on rainfall during the preceding wet season. Air-sac mite (Sternostoma tracheacolum), found in 62% of Gouldian Finches sampled, may be preventing the species recovering to former numbers. New colonies of Gouldian Finches should be identified, populations monitored, and habitat managed by effecting patchy burns by low-intensity fires early in the dry season.