European Alpine landscapes are facing marked land-use changes. On the one hand, outdoor winter recreation is spreading, with ski infrastructure degrading fragile mountain habitats, and snowsports causing disturbance and stress to wildlife. On the other hand, the abandonment of traditional grazing practices on timberline grasslands is leading to their encroachment by shrubs and forest, which decreases habitat heterogeneity and negatively affects biodiversity. We used the black grouse, a declining key indicator species of the Alpine timberline ecosystem, to assess optimal breeding habitat characteristics, with the goal of providing guidelines for appropriate restoration. Using Mixed Effects Logistic Regression analyses, we compared habitat features both at visited and at pseudoabsence locations within individual home ranges in order to determine the optimal habitat for males and females. Horizontal and vertical structural heterogeneity within all vegetation layers was the best predictor of occurrence for both sexes. In contrast, vegetation composition affected the presence of females, but not that of males. Females preferred a diverse, complex mosaic consisting of isolated mature coniferous trees and scattered small regenerating trees, associated with shrub cover (Ericacea) and Alpine meadows (Nardion). Chick-rearing females furthermore avoided roads, forest tracks and walking paths. The optimal predicted proportions of habitat types obtained from the model provide guidelines for the restoration of timberline ecosystems through corrective forestry measures and/or adapted grazing practices. These measures are likely to also benefit other Alpine timberline biodiversity.