Livestock grazing in arid and semi-arid rangelands (drylands) encompasses a greater area than any other land use. Australia supports the largest area of managed grazing land worldwide. Evidence for direct and indirect effects of grazing on small mammal species in rangelands is often inconclusive or mixed, with variation in responses among species. I review the evidence for the influence of livestock grazing systems on small mammals in Australian drylands broadly. I examine the threat posed by grazing to three species that are considered Vulnerable or Presumed Extinct in New South Wales: southern ningaui (Ningaui yvonneae), stripe-faced dunnart (Sminthopsis crassicaudata), and plains rat (Pseudomys australis) in view of their ecology and behaviour.