The white-tailed Tropicbird can be found over pelagic waters and the coasts of tropical and subtropical seas. It feeds on small fish, especially flying-fish, squid and some crustaceans (especially crabs). Its diet varies locally; e.g. in the Seychelles, it consists mostly of fish. Most prey is caught by plunge-diving, but flying-fish can be taken on the wing. Breeding occurs seasonally in places, but can also occur aseasonally. The species is loosely colonial, nesting in rocky crevices or a sheltered scrape on the ground on small-remote islands. Nests are placed preferably in inaccessible spots on cliffs where take-off is easy. It is resident and dispersive, with both adults and juveniles wandering extensively (del Hoyo et al. 1992).

This species can be found across much of the tropical oceans, including the southern Indian Ocean, the western and central Pacific, and the southern Atlantic Ocean. Breeding colonies are also found in the Carribean (del Hoyo et al. 1992).