The episode title refers to "tree hugger", the slang term, sometimes derogatory, for environmentalists.
Lisa's quest to save Springfield's oldest redwood tree by living in it is a reference to the real-life story of Julia Butterfly Hill and a Californian redwood tree called "Luna". Hill lived in the tree for two years and succeeded in preventing it from being cut down by loggers. The details of Lisa's day-to-day existence in her tree (such as hauling supplies up to her tent by a rope) are very similar to Hill's.
Later in the episode, he mentions his daughter is on the wait list at Bennington, another private liberal arts college.
During Bart's ninja sequence, some of the visual effects from the 1999 film The Matrix are parodied, such as bullet time.
The montage where Bart delivers the menus for You Thai Now is a reference to the 1999 film The Matrix:
Music from the movie's soundtrack plays during the scene, and is also heard during the credits.
When Bart is in the apartment building, he goes into "bullet time" when he first enters the hallway, then runs along the walls as he leaves the menus on the doorknobs, referencing two of the movie's distinctive special effects shots.
According to Jesse Grass, they are hosed with Tabasco whenever they protest in New Orleans. This American brand of hot sauce has its origins in that city.
When describing Jesse, Kent Brockman mentions Birkenstock, a German shoe manufacturer known for its sandals that was associated with hippies in the 1970s.
Jesse warns activists that once they are living on the tree, they cannot go down, even for a concert by American rock band Phish or to attend the Burning Man event in Nevada.
Kentucky Fried Panda is a parody of KFC. Its slogan, "Finger Ling-Ling Good!", is a pun on the real slogan, "Finger-Lickin' Good", and to Ling-Ling, a panda given to the US by China in 1972.
When the giant log destroys Kentucky Fried Panda, Homer exclaims "No! It was finger-ling-ling good!", which is a reference to Kentucky Fried Chicken and its slogan, "Finger-Lickin' Good", and to either or both of two famous giant pandas named Ling-Ling:
After Marge sings a song about thrift, Bart exclaims that he doesn't have a cap; however, he is seen wearing his lucky red hat in some episodes, commercials, comics and games.
Jesse points out that whichever member of Dirt First stays in the redwood won't be able to come back down "Not even for a Phish concert". In "Weekend at Burnsie's" several members of Dirt First are seen at the Phish concert.