Little is known of the ecology of this species. It is a high-altitude specialist living in the cloud forest and paramo of the Andes at elevations over 1,300 m. It is assumed that it is similar to other procyonids in that it is somewhat arboreal and omnivorous. Five principal food categories were found in mountain coati diet: invertebrates, vertebrates, fruits, vegetable remains and undetermined food items (Rodríguez-Bolaños et al. 2000). Higher detection frequencies occur near Chusquea stands in elevations near Bogota (J.F. González-Maya pers. comm. 2015). It evidently does not require pristine or little-encroached habitats: it still fairly common in the forest fragments surrounding large cities such as Bogota and Medellin, Colombia (J.F. González-Maya pers. comm. 2015). It has also been reported in other modified and natural ecosystems of Colombia (Sánchez and Alvear 2003, Rámirez-Chávez et al. 2008).

The Western Mountain Coati is endemic to the Andes of Colombia and Ecuador, where it has been found from 1,300 m to as high as 4,260 m a.s.l. (Helgen et al. 2009, Balaguera-Reina et al. 2009). It might yet be found to occur in Peru. References to its occurrence in Venezuela refer to Eastern Mountain Coati N. meridensis, generally considered until recently to be conspecific with N. olivacea.

The Western Mountain Coati is present in several protected areas of Colombia and Ecuador (Balaguera-Reina et al. 2009). The species is not legally protected in Ecuador or Colombia (Glatston 1994). Its chief identifiable conservation need is for clearer information on its adaptability to the many potential threats occurring within its range.