This species occurs in primary lowland rainforest from sea level up to 1,500 m asl, and is also found in mangroves (Hodgkison and Kunz 2006). In Kalimantan, it inhabits secondary and primary forest. It roosts in ferns in rubber trees and excavated termite nests and usually forms small harem groups (Kingston 2006). It has also been reported from rubber plantations managed by villagers which retain vegetative structure (A. Suyanto pers. comm.).

The populations in Peninsular Malaysia have been updated to Balionycteris seimundi (Lim et al. 2017). According to Hodgkison and Kunz (2006), this species occurs throughout the Malay Peninsula, northern and western Borneo (Brunei, West Kalimantan, Sabah, and Sarawak), the Riau Archipelago (on the islands of Durian and Galang), and southern Thailand. In Thailand, it is known only from Khao Phu Pah, in Trang Province (Corbet and Hill 1992, Lekagul and McNeely 1977). It also has been recorded in the Tiga puluh Hills on the island of Sumatra, Indonesia, on the Riau–Jambi provincial border (Danielsen et al. 1997). Recent surveys have confirmed its presence also in more southern localities in central and east Kalimantan (Suyanto and Struebig 2007).

On the Malay Peninsula and Borneo (Sabah, Sarawak, Brunei, and western Kalimantan), this species occurs within several reserves and protected areas, including production forests (Hodgkison and Kunz 2006). No direct conservation measures are currently taken for the species as a whole.