The Margay is strongly associated with forest habitat/tree cover, from continuous forest to small forest fragments in savanna ecosystems, both evergreen and deciduous, although it has been occasionally reported outside forested areas (Nowell and Jackson 1996, Oliveira 1998, 2011). It seems to be absent from the semi-arid scrub of the Caatinga domain in Brazil, with the exception of some evergreen forest enclaves (T. de Oliveira pers. comm.). This species is thought to be more arboreal and better adapted to live in trees than other cat species. It is perceived as being a little less tolerant of human settlement and altered habitat than its close relatives, the ocelot and tiger cat. Nevertheless, Margay will use highly disturbed forest, abandoned plantations and other agroforestry systems which provide sufficient tree cover (J. Schipper pers. comm., Oliveira et al. 2010, Tortato et al. 2013).

The Margay is a small-sized (3.3 kg) solitary felid, with an average litter size of 1.09 (1–2) (Oliveira and Cassaro 2005). Activity pattern is predominately nocturno-crepuscular, with very few records of daytime activity. Prey base consists mostly of terrestrial and scansorial small mammals, but lizards and especially birds can comprise important items at some sites. Larger medium-sized mammals, like squirrels, rabbits, agoutis, and small monkeys are also taken, but to a lesser extent. The average prey size is around 250 g. Although Margay has high arboreal abilities, it hunts mostly on the ground and most prey recorded are terrestrial (Oliveira 1998, Wang 2002, Oliveira and Cassaro 2005, Bianchi et al. 2011).  Given its arboreal capabilities there has been a recurring myth that this cat is either scansorial or arboreal. It indeed possesses several unique arboreal skills, but that does not necessarily make it arboreal per se. In fact, evidence is highly suggestive of terrestrial locomotion and hunting, but nevertheless with resting time notably up in trees (Oliveira 1998, Oliveira et al. 2010, Tortato et al. 2013). The limited information on home range size varies from 1 to 20 km² (Oliveira et al. 2010). Home range reported for Mexico was 4.1 km² for four males and 1 km² for a female (Carvajal-Villarreal et al. 2012). The Margay occurs at low population densities throughout most of its range, and its numbers/densities are negatively impacted by the larger Ocelot, its potential intra-guild predator/competitor (Oliveira et al. 2010, Oliveira 2011).

The Margay ranges from the tropical lowlands of Mexico south through Central America and the Amazon basin to southern Brazil and Paraguay (Nowell and Jackson 1996). Its southernmost limits reaches northeastern Argentina, north-central Rio Grande do Sul state in Brazil and northern Uruguay along riverine forest (Dotta et al. 2007, Tortato et al. 2013). Its occurrence in the northeastern part of Brazil is restricted to the Atlantic Forest domain (Oliveira and Cassaro 2005, Tortato et al. 2013). It generally occurs from 0-1,500 m, however, it has rarely been recorded up to 3,000 m in the Andes (Oliveira 1994). Although the species has a very broad distribution range, its area of occupancy is considerably smaller.

Included on CITES Appendix I. This species is protected across most of its range, with hunting and trade prohibited in Argentina, Brazil, Bolivia, Brazil, Colombia, Costa Rica, French Guiana, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Suriname, Uruguay and Venezuela (Nowell and Jackson 1996). Populations in protected areas are expected to be very low, likely because of the impact of the higher ocelot densities, thus conservation efforts should concentrate outside protected areas (Oliveira et al. 2010, Oliveira 2011). Further studies are required on the species ecology, demographics, natural history, and threats.