The Moonrat prefers primary and secondary lowland forests, including very moist areas such as mangroves and swamp forests. It is also found in hilly forests. The species can also tolerate a certain degree of habitat modification, and can be found in rubber plantations and other cultivated areas. According to Lekagul and McNeely (1977), Moonrats prefer wet areas and often enter water.

The Moonrat occurs in the Sundaic region of Indonesia, Malaysia, Brunei, southern Thailand and southern Myanmar. It can be found throughout Borneo (Brunei, Kalimantan, Sabah and Sarawak), Labuan island (off Sabah), Sumatra, Tebingtinggi island (off the east coast of Sumatra), Peninsular Malaysia, Peninsular Thailand south of 12ºN, and extreme southern Myanmar (Corbet 1988). It has not been reported from Singapore, though it might once have occurred there. It occurs from sea-level up to at least 1,000 m asl.

This species is present in many protected areas. Further studies are needed into the taxonomy, distribution, and abundance of this species. If it is shown to comprise several species, it is possible that some of these might prove to be threatened. Research should be carried out to determine whether or not this species can survive in large-scale oil-palm plantations.