A forest species preferring primary forest, it is not common in disturbed forest areas. It roosts in caves in Peninsular Malaysia (Payne et al. 1985). In Thailand, they can be found roosting in large colony in Huay Klang Cave which is surrounded by cultivated areas (Douangboubpha et al. 2010). Found share habitats with H. armiger, H. turpis and Hipposideros spp. (Douangboubpha et al. 2010). This species recorded captured in a variety of habitats which include secondary and primary lowland forests, rubber plantations, cultivated areas and human settlements which mostly in area of limestone (Douangboubpha et al. 2010).

This species is found from Thailand, Peninsular Malaysia, Singapore, Sumatra, Java, Borneo and the Philippines. In the Philippines, the few individuals referred to this species are from Luzon (Camarines Sur province) and Mindoro (Heaney et al. 1998). A specimen from Palawan reported by Allen (1922) was recently re-identified as Hipposideros ater, which is the only report of the species from the island (Esselstyn et al. 2004). Within Peninsular Malaysia, the Hipposideros bicolor species complex were defined as phonic types of H. bicolor 131 kHz and H. bicolor 142 kHz (Kingston et al. 2001) which later H. bicolor 131 kHz is designated as H. bicolor meanwhile H. bicolor 142 kHz (previously recognized as H. atrox, Douangboubpha et al., 2010) is now recognized as H. kunzi (Murray et al., 2018). H. bicolor has been recorded throughout Peninsular Malaysia including Penang Island, Gunung Stong (Shukor et al. 2005, Mariana et al. 2005), Krau Wildlife Reserve (Kingston et al. 2006), Kuala Atok, Taman Negara Pahang (Tingga et al., 2012), Borneo, Lower Kinabatangan Wildlife Reserve (unpub. data, 2008), Bako, Fairy Cave, Jambusan Cave (Khan et al. 2008), Tanjung Datu National Park (Khan, 2014, unpub. data), Samunsam Wildlife Sanctuary (Khan et al. 2017), Sungai Ingei, Perayan Forest Reserve, Ulu Temburong National Park (Struebig et al. 2012), Thailand, Huay Klang Cave, Lamnam Kra Buri, Khao Lampi-Had Thaymuang National park, Tham bok Karanee National Park, Ton Nga Chang Wildlife Sanctuary, Rattaphum, Hala-Bala Wildlife Sanctuary (Douangboubpha et al. 2010).

The species occurs in a number of protected areas. In Sarawak, this species is listed as a protected animal (Wildlife Protection Ordinance 1998).