Habitats and populations of greater sage-grouse (Centrocercus urophasianus) have declined throughout western North America in response to a myriad of detrimental land uses. Successful restoration of this species' habitat, therefore, is of keen interest to Federal land agencies who oversee management of most remaining habitat. To illustrate the challenges and potential for landscape restoration, we summarized recent findings of restoration modeling for sage-grouse in the Interior Northwest. Changes in amount and quality of habitat were evaluated under proposed Federal management and under two restoration scenarios. Under the two scenarios, the rate of habitat loss was reduced and the quality of habitat was substantially improved compared to proposed management. These results have direct implications for restoration planning and monitoring. First, a strategic, multiscale approach is needed that links the scale of the stand with scales of the seasonal, year-round, and multipopulation ranges of sage-grouse. Second, consideration of connectivity across scales is essential. Third, extensive and sustained use of a holistic suite of passive and active restoration treatments is needed. And finally, monitoring of both habitat and population responses across scales is critical. We offer suggestions on these and related points for effective restoration planning and monitoring of sage-grouse habitat.