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Purpose of the Review The concept of tree-related microhabitats (TreMs) is an approach to assess and manage multi-taxon species richness in forest ecosystems. Owing to their provision of special habitat features, TreMs are of special interest as a surrogate biodiversity indicator. In particular, in retention forestry, TreMs have gained attention over the past decade as a selection criterion for retained structural elements such as habitat trees. This review seeks to (a) address the suitability of TreMs as biodiversity indicator in the context of retention forestry, (b) summarize drivers of TreM occurrence and the status quo of the implementation of TreM-based retention concepts in forest management, and (c) discuss current and future challenges to the use of TreMs as biodiversity indicator. Recent Findings The TreM concept originated in Europe where it is now increasingly implemented. Most studies of the quantity, quality, and diversity of TreMs are focused on tree species from this region, although it is increasingly applied in other contexts. In addition to tree species, tree dimensions and live status have been identified as the main drivers of TreM occurrence. One major remaining research challenge is to verify relationships between the occurrence and abundance of forest-dwelling species from different taxonomic groups and TreMs to improve the evidence basis of this concept and thus increase its integration in forest conservation approaches. Summary TreMs are not the “silver bullet” indicator to quantify biodiversity of forest dwelling species, but they provide an important tool for forest managers to guide the selection of habitat trees for the conservation of the associated biodiversity.