It is found in primary and secondary forest, the forest edge, and rural gardens in hill. It also occurs in moss forest at mid-montane elevations. Animals roost singly or in pairs in foliage. It is a frugivorous species. In Morobe and Eastern Highlands Provinces, pregnant females have been found in November and in February.

This species occurs in highland areas (700 to 3,000 m asl) on the island of New Guinea, including the central cordillera, Huon Peninsula, Adelbert Range, and North Coastal Range (Bewani Mountains, Prince Alexander Mountains, Torricelli Range) (Irwin 2017). It is apparently also found in upland areas of East New Britain, but this requires checking.

In areas of lower elevation within its range, where it overlaps with other species of Nyctimene of similar size, there is a chance of misidentification. Irwin (2017) provided the means to distinguish four taxa (N. certans, N. cyclotis, N. papuana and N. wrightae), but did not include N. draconilla. However, its distribution is probably better understood than the other smaller species because it replaces the other species at higher elevations.

It is presumed to be present in most protected areas within its distribution. Broadscale protection of forests will help maintain population size in this species. The species is protected in some areas by local religious beliefs. People on Mount Telefomin regard it as extremely bad luck to kill the species. Additional research into the species diction, ecology, and population status and trends is warranted to inform conservation.