Bradypus variegatus has been recorded from a number of forest types including seasonal mesic tropical forest, semi-deciduous forest (inland Atlantic Forest), cloud forest, and lowland tropical forest. In Bolivia, it is frequently observed in Cecropia trees. It inhabits cacao (Theobroma cacao) plantations in Costa Rica (Vaughan et al. 2007, Ramirez et al. 2011). Indeed, regenerating forests, such as those disturbed by shade cacao plantations, might provide positive population growth for this species (Garcés-Restrepo et al. 2019). This sloth species produces one litter of one infant at intervals of at least 19 months (T. Plese pers. comm. 2010). Mating period varies depending on the year and geographical region, but occurs mainly in spring (i.e., from July to November in South America and from February to May in Central America).

The species has the ability to withstand habitat changes (Queiroz 1995). It can be considered as synanthropic; individuals that lose their habitats partially or totally are able to use the resources offered by vegetation fragments in urban areas (Bezerra et al. 2020, Andrade et al. 2020), both in preserved or restored areas (parks, reserves) and those used for urban afforestation. This fact refers mainly to the Atlantic Forest region of Brazil, as it has become a very critical environment for the survival of B. variegatus due to the high degree of anthropization related to the growth of numerous cities along the coast of Brazil.

Bradypus variegatus ranges from Honduras in the north, through southern Central America. In South America, it ranges from Colombia into western and southern Venezuela, and south into Ecuador, eastern Peru and Bolivia, into Brazil and northern Argentina (where it is now considered to be extirpated). Its distribution overlaps with B. torquatus in the central part of the Atlantic forest (Hirsch and Chiarello 2012). In Brazil, the species currently occurs in forested areas of the Amazon, Atlantic forest, and possibly in the contact zones between these biomes and Cerrado. There are historical records of B. variegatus in the Caatinga biome (Moraes-Barros unpublished data 2010). B. variegatus was recently recorded for the first time in the Cerrado sensu stricto, in Minas Gerais State, Brazil (Garcia et al. 2017).

There are no confirmed records for B. variegatus in the Pantanal biome of Brazil or Bolivia, but the species might occur in the contact zones between this biome and the Amazon forest to the north. Additional field studies are necessary in order to properly define the current species distribution in the Cerrado, Caatinga and Pantanal.

The southernmost distribution of this sloth in Brazil was reported by Cabrera (1957) as the state of Rio Grande do Sul, which could, however, not be confirmed (Gardner 2007). It is historically absent from the state of Santa Catarina (Brazil) and northeastern Argentina; the southernmost confirmed record of the species is near Londrina, in the state of Paraná, Brazil, but today it is considered extinct in this state (Mikich and Bernils 2004). The last record from Argentina was collected in Jujuy province and dates back to 1916 (Vizcaíno et al. 2006), but field studies specifically aiming at this species are lacking from this country. Bradypus variegatus is found from sea level to at least 2,500 m asl (Ureña et al. 1986, Allgas et al. 2015).

Bradypus variegatus is present in many protected areas. It is included in CITES Appendix II. The species is listed as Endangered in Honduras (Wildlife Conservation Society 2021).