Grooved-toothed flying squirrels like to build nests in tree holes of tall trees. The nests are built in dead tree holes, with the hole openings ranging from 5 to 10 meters from the ground. The hole openings are small, about 10 cm, and the hole depth is about 50 cm. The nests are made of birch bark and feathers.
Grooved-toothed flying squirrels are nocturnal. They move alternately by gliding and climbing. It is herbivorous, feeding on various tender branches, buds, leaves, fruits, mushrooms, etc., and also a small amount of insects. It does not hibernate. Its natural enemies are mainly mustelids and raptors. Little is known about the ecology of other flying squirrels.
It reproduces once a year, with 1 to 2 cubs per litter. The lactation period is around May each year.
The Grooved Flying Squirrel is found only in a few places, and its number is very small, and it is already endangered. It is now included in China's "National List of Terrestrial Wildlife with Important Economic and Scientific Research Value" and the "World Conservation Union" (IUCN) 2008 Red List of Endangered Species.