Tarawi Nature Reserve contains an area of relatively undisturbed scotia mallee and she-oak communities. Localised areas within the reserve support belah—western rosewood woodland with relatively rich understoreys. This is virtually unknown elsewhere as grazing removes this species.

Much of the sand plain country is relatively open, supporting bluebush, narrow-leafed hop-bush, turpentine, various chenopod saltbushes and a variety of native grasses.

The reserve is prime habitat for the endangered malleefowl. Tarawi Nature Reserve also features areas of Acacia wilhelmiena, a dwarf wattle less than two metres high and bluebush daisy, an endangered plant in NSW that is restricted to a few specimens in the Wentworth district.

Vulnerable birds include the striated grasswren, gilbert's whistler, the southern scrub robin and the shy hylacola. Two endangered birds also occur in the area, the regent parrot and the black-eared miner.

Tarawi Nature Reserve is managed to protect its natural and cultural heritage values, control exotic species both flora and fauna within the reserve and provide appropriate educational and recreational opportunities.