Exotic timber plantations have expanded in the montane habitats of the Western Ghats in the last century, often replacing the natural grassland-rainforest mosaic. This has inadvertently increased tree connectivity across the landscape, affecting arboreal mammals in varied ways. Here we report that the endemic Indian giant squirrel nests in exotic timber plantations in the Palani Hills, a behaviour not previously described. An extensive survey of timber plantations revealed a total of 70 nests, with 73% of the nests found on exotic Eucalyptus trees. An investigation of the landscape and environmental factors that were associated with the choice of nesting locations revealed that nest sites were significantly closer to rainforest patches. Squirrels also nested on east-facing slopes, away from human disturbances like agriculture. This study is the first to report giant squirrel nesting behaviour in exotic timber plantations across a landscape mosaic. We suggest that policymakers and managers proceed with caution while clearing plantations in an attempt to restore native vegetation.