It occurs in lowland moist forest. It has been recorded in primary forest, relatively tall secondary forest, and in selectively logged forest (Oren 2006). It appears to prefer relatively dense terra firme forest, although it has been recorded in seasonally flooded gallery forest, and has been reported to range into wooded cerrado (del Hoyo and Kirwan 2020). It is mostly arboreal, but sometimes forages on the ground (Oren 2006).

Penelope pileata occurs exclusively in dense lowland humid forest south of the river Amazon, from lower rio Madeira, east to Pará (Ourém and Serra dos Carajas), Maranhão (rio Grajaú, and the Mearim-Pindare river system), and Tocantins (Buzzetti 2004, Kirwan et al. 2015) in north-central Brazil (Sick 1993, Roth 1997, J. F. Pacheco in litt. 1999, F. Olmos in litt. 1999).

Conservation Actions Underway
It occurs in Amazônia (Tapajós) National Park and the Gurupi Biological Reserve.

Conservation Actions Proposed
Monitor population trends at known sites. Research the species's population size and ecology.

Organise campaigns to raise awareness and reduce hunting and trapping for trade. Effectively protect Amazônia (Tapajós) National Park and designate further protected areas within its lowland forest range. Enforce legislation to prevent deforestation, disturbance and forest degradation within its range.