Palawan Stink-badger is found in primary and secondary lowland forests and in disturbed habitat including mixed grassland, low-intensity agriculture and urban areas, and has been recorded from the landward edge of mangroves (Hoogstraal 1951, Grimwood 1976, Rabor 1986, Heaney et al. 1998, Widmann and Widmann 2004). Dogs and cats do not seem to bother this species due to its potential to excrete a nauseating chemical from its anal glands (Widmann and Widmann 2004). The diet comprises largely worms and soil arthropods, so this species is perhaps more common in areas with soft soil for foraging; grasslands typically have extensive root systems which make digging difficult, and it is seen along small streams during the dry season (Widmann and Widmann 2004).

Palawan Stink-badger is endemic to the Palawan island group, situated between Borneo and the Philippines and part of the latter country (Widmann and Widmann 2004). It inhabits Palawan Island, Busuanga and Calauit, but is found neither on the smaller outlying coral islands such as Rasa and Malinau, nor on the larger land-bridge island of Dumaran (Widmann and Widmann 2004). Corbet and Hill (1992) listed the species as occurring on Iloc island, although no primary source is given. It occurs up to at least 300 m asl; its occurrence at higher altitudes has not been assessed, at least by 2004 (Widmann and Widmann 2004).

As an endemic of Palawan, thisspecies is protected at the provincial level. No specific conservation measures seem to be in place, but there is no obvious need for any. This species inhabits at least one protected area, Puerto Princesa Subterranean River National Park (P. Widmann pers. comm. 2014).