This study monitored the habitat-use patterns of 71 radio-marked sage-grouse inhabiting an area affected by wildfire in the Virginia Mountains of northwestern Nevada during 2009–2011 to determine the effect of micro-habitat attributes on reproductive success. Sage-grouse selected micro-sites with greater shrub canopy cover and less cheatgrass (Bromus tectorum) cover than random sites. Total shrub canopy, including sagebrush (Artemisia spp.) and other shrub species, at small spatial scales (0.8 ha and 3.1 ha) was the single contributing selection factor to higher nest survival. These results indicate that reducing the risk of wildfire to maintain important sagebrush habitats could be emphasized in sage-grouse conservation strategies in Nevada. Managers may seek to mitigate the influx of annual grass invasion by preserving large intact sagebrush-dominated stands with a mixture of other shrub species. For this area of Nevada, the results suggest that ≥40% total shrub canopy cover in sage-grouse nesting areas could yield improved reproductive success.