Black-tailed prairie dogs are important because they are a keystone species of the prairie. Along with bison and other burrowing animals, they were largely responsible for the rich diversity of life on the western plains. Although that has changed over the past century with their decimation, prairie dogs still help to sustain many other vertebrate species on the prairie today.
Their burrowing activity works to loosen and churn up the soil, increasing its fertility. This helps to sustain plant life, which in turn helps to sustain animal life. The burrows themselves can act as homes to other creatures, such as burrowing owls, badgers, rabbits, black-footed ferrets, snakes, and insects. The foraging and feeding practices of prairie dogs (grazing, clipping, and even defecating) positively impact the environment by creating more nutritious and nitrogen-rich plants and grasses. Their activities also enable a more diverse mixture of grasses and forbs (broad-leafed vegetation) to grow, attracting an array of wildlife creatures who come to graze in their colonies on the enriched vegetation. It is for this reason that bison and black-tailed prairie dogs have historically preferred each other's company and explains why cattle and black-tailed prairie dogs are compatible as well.
Lastly, black-tailed prairie dogs play an integral role in the prairie food chain. They are a critical food source for such animals as the endangered black-footed ferret, swift fox, coyotes, hawks, eagles, and badgers. The extinction of the black-tailed prairie dog would clearly be catastrophic for the entire Great Plains ecosystem.