The species is found in both lowland and montane forest from sea level to 1,810 m (Quintero & Jetz 2018, P. Dahal (unpublished 2021). It appears to naturally occur at low densities, and is considered highly sensitive to disturbance (Parker et al. 1996, Holt et al. 2020), although some observers report birds present in small (>6 ha), disturbed blocks of habitat (A. Bispo per F. Olmos in litt. 2003). The species may therefore also be found across secondary growth forests, degraded forests, and plantations, including forest edges (Holt et al. 2020).
The species' primary diet includes small mammals, birds, and insects, as well as reptiles and amphibians (Holt et al. 2020). Breeding seasons, although uncertain, are likely to be between December and mid-March (Holt et al. 2020).

Strix hylophila is a patchily-distributed, but locally common species occurring in the southern Atlantic Forest of Brazil (from Minais Gerais to Rio Grande do Sul), east and south Paraguay and extreme north-east Argentina (Holt et al. 2020).

Conservation Actions Underway
CITES Appendix II. It has been recorded form a number of protected areas including Rio Doce State Park (Minais Gerais), Aparados da Serra National Park (Rio Grande do Sul), Itatiaia National Park, Serra da Cantareira State Park (São Paulo) and Iguazú National Park (Misiones) (del Hoyo et al. 1999, C. O. Gussoni per F. Olmos in litt. 2003, Holt et al. 2020). It is listed as nationally Vulnerable in Argentina (Aves Argentinas and Ministerio de Ambiente y Desarrollo Sustentable de la Nación 2015).

Conservation Actions Proposed
Quantify the population size. Clarify its vulnerability to fragmentation and disturbance. Investigate the possible impact of exploitation. Survey and monitor populations at known sites.
Effectively protect core areas of remaining Atlantic forest.