Red Squirrel I came upon this happily chattering Red Squirrel while hiking in the forest. Although he kept his eye on me, he was filling his little cheeks with the seeds from cones of the fir tree he was standing on. As I stood quietly, I recalled it had been a long time since I had seen one. This is due to the loss of their habitat - coniferous forests and deciduous woodlands. The much larger Gray Squirrel and the smaller Red Squirrel compete for the same food. The Gray Squirrel thrives with urbanization, but unfortunately, red squirrels do not survive the loss of their habitat. This was indeed a lucky encounter.