We studied microhabitat use of the giant panda (Ailuropoda melanoleuca) and the red panda (Ailurus fulgens) from November 2002 to March 2003 at Fengtongzhai Nature Reserve, Baoxing County of Sichuan Province, China, where the 2 species are sympatric. The means of discriminant scores between the 2 species differed, suggesting each had a distinct microhabitat selection pattern, consistent with 1-way ANOVA and Kruskal-Wallis tests. We found that 6 of 19 microhabitat variables differed significantly between these species. Four variables were associated with preferences of the giant panda and 2 from preferences of the red panda. We suggest that environmental factors (slope, fallen log, etc.) other than food availability were primarily responsible for microhabitat separation between the 2 pandas. We hypothesize that the pattern of microhabitat separation did not result from ecological or evolutionary adjustment to reduce interspecific competition but from differences in physiological and ecological requirements. With abundant food resources, slope appeared to be a more important microhabitat feature to the giant panda than any single food factor. The presence of fallen logs and tree stumps was similarly an important microhabitat feature selected by red pandas.