It inhabits closed-canopy primary lowland, foothill and lower montane forests from 100-1,800 m (Mauro and Drijvers 2000, Eaton et al. 2021). In more open areas and forest edge, it is replaced by Tyto rosenbergii (Eaton et al. 2021). It is presumably sedentary.

Tyto inexspectata is endemic to Sulawesi, Indonesia. Its distribution is poorly studied—there are multiple records from North Sulawesi and some from Lore Lindu National Park, Central Sulawesi (Mauro and Drijvers 2000, eBird 2023), but the southern limit of its range is essentially unknown. It was not, for example, detected in South-East Sulawesi by Berryman and Eaton (2020), where it might have reasonably been expected.

Conservation Actions Underway
CITES Appendix II. It is known to occur in several National Parks, including Tangkoko, Bogani Nani Wartabone and Lore Lindu (eBird 2023). 

Conservation Actions Proposed
Conduct widespread searches for the species in suitable habitat (using playback of its vocalisations) to clarify its range, distribution and population status. Reassess its conservation needs following these surveys, recommending further areas for protection where appropriate. Lobby for reduced logging of lower altitude forest in Sulawesi.