DESPITE its diminutive size, the humble bilby can dig a desert back to life, according to research that reveals the marsupial's vital role in arid environments.

Alex James, a PhD student from the University of NSW, said the bilby's night-time foraging expeditions left the desert surface full of potholes, which made for ideal conditions for nutrient-rich "hot spots" to develop.

The endangered bilby helps make the desert bloom. Photo: Andy Zakeli

The potholes, the result of the bilby digging for food, are no deeper than 20 centimetres and about the size of a saucer. But Ms James found they played an important role in revegetation, with the depressions trapping seeds, plant matter and water.

"Soils in arid areas are very nutrient-poor, so any (plant) litter that gets trapped and decomposes increases the nutrients in the soil which benefits plant growth," she said, noting that bilby diggings contained up to twice the levels of nitrogen and carbon nutrients as undisturbed soil.