Watchimbark Nature Reserve contains a rare serpentinite geological outcrop, Grassy Heath and Mallee Woodland communities, and a stand of Dry Rainforest. It also contains four threatened plant species and a large number of rare plant species that are endemic to the serpentinite vegetation communities of the area, have a limited distribution or represent an extension of their known distribution. Eleven threatened animal species have been recorded in the reserve. Much of Watchimbark Nature Reserve is declared wilderness.
The New South Wales National Parks and Wildlife Act 1974 requires that a plan of management be prepared for each nature reserve. A draft plan of management for Watchimbark Nature Reserve was placed on public exhibition from 27 April until 30 July 2012. The submissions received were carefully considered before adopting this plan.