Large-eared Pied Bats are generally found in areas with extensive cliffs, escarpments or rocky outcropping, typically sandstone but also other geological substrates that it uses for roosting (Pennay 2008). It forages in a broader range of habitats surrounding these rocky areas including dry and wet sclerophyll forests and woodland, subalpine woodland, open Eucalypt forest with a rainforest canopy, and at the edge of rainforest habitat (Duncan et al. 1999; Hoye and Schulz 2008, Pennay 2008). It has also been reported roosting in mine tunnels, and Fairy Martin nests. Females give birth to one or two young in December in maternity colonies numbering 20-40 individuals (Pennay 2008).

This poorly-known species is endemic to Australia where it is found in scattered localities in eastern New South Wales and adjacent south-eastern Queensland. Its distribution is severely fragmented and restricted due to the Large-eared Pied Bat’s specific requirements for foraging and roosting habitats (Pennay 2008, Woinarski et al. 2014). Although its extent of occurrence is large (EOO is >20,000 km²), its area of occupancy (AOO) is 1,508 km²; if defined by maternity sites only, the AOO is believed to be smaller than 500 km² (Woinarski et al. 2014). Its strongholds are the sandstone areas of the Sydney Basin, Pilliga, and the Central Queensland Sandstone Belt (Pennay et al. 2011, Woinarski et al. 2014). Modelling of its distribution suggests it requires a combination of sandstone (or other rocky substrate) escarpment for roost and fertile valleys for foraging (Pennay 2008). It has been recorded from sea level to almost 1,500 m elevation at the top of Mount Kaputar in Northern NSW.

The species has been recorded from a number of protected areas. There is an immediate need protect the few known maternity sites and forest habitats within its area of occupancy. Further research is needed to locate additional maternity roosts and into the species population status, trends, ecology and threats (Woinarski et al 2014).