Habitat change has major effects on wildlife and it is important to understand how wild animals respond to changing habitats. Dashanbao National Nature Reserve, in north-east Yunnan, China, which was established for the protection of the black-necked crane Grus nigricollis, other wintering waterbirds and the upland wetland ecosystem, recently began converting farmland to grassland and woodland. With respect to this policy we studied habitat selection by black-necked cranes in the Reserve from November 2006 to April 2007. Farmland, grassland, marsh and water were used by black-necked cranes but no cranes occurred in man-made woodland. Black-necked cranes showed the least preference for grassland and no significant differences were detected in the species’ preference for the other three habitats. However, black-necked cranes exhibited different behavioural responses to the four habitats: farmland and grassland were their main foraging sites. Principle component analysis verified that a foraging-related component was the first factor determining habitat selection. Cranes used habitat close to their roosts with short grass, shallow water and less disturbance by human activity. Our results indicate that the policy of converting farmland and grassland to woodland is not beneficial for conservation of the crane. For effective conservation of the black-necked crane scientific habitat management that takes into account habitat selection by the species is required, with the retention of some farmland and restoration of wetlands.