This solitary species is found in desert, xeric grassland and shrubland, and Patagonian steppe habitats, always with sandy soils (including volcanic soil; Superina 2008). It can be found in some degraded habitats, such as pastureland and plantations. Animals have a relatively large home range within their arid habitat. Reproduction is restricted to the Spring months (Superina and Jahn 2009), and the female gives birth to one or two young (Superina et al. 2009). Zaedyus pichiy is the only armadillo species known to hibernate during the cold season (Superina and Boily 2007). It can enter torpor during periods of environmental stress (Superina and Jahn 2013).

It is not possible to determine their age once they reach adult size, and long-term population studies on pichis are lacking. Therefore, there are no data on the longevity, survival rates, or reproductive rates of wild pichis. Data from captive animals in Argentina show that females reach sexual maturity at 9-10 months of age, but that some females do not breed until their second year (Superina et al. 2009). Limited data from captive pichis suggest that their longevity is approximately 10 years. The generation length is thus suspected to be around 4 years.