This diurnal lizard occurs in all habitats and climatic zones in tropical West Africa, except for the Sahara and dense forest (Trape et al. 2012). It is tolerant of habitat modification and can be abundant in human settlements, in both its native and introduced ranges. In Nigeria, it is very largely a human commensal and tends not to occur in undisturbed forest or savanna habitats (Grandison 1968). This lizard is naturally semi-arboreal, but is also rock-dwelling and adapts readily to walls and concrete structures (Mediannikov et al. 2012). In Gabon it is often found in gardens and on house walls (Pauwels et al. 2016). It is commonly found under logs, dry leaves, sandy substrates and in branches (Akani and Luiselli 2010). It can also be found in boulder fields and other rocky habitats, sometimes in large numbers, although these are generally not considered favoured habitat types (Grandison 1968). It is easy to find throughout West Africa, where it is often the only agama encountered, typically resting on walls or in trees (Trape et al. 2012). It feeds on insects (Trape et al. 2012) and is the only reptile known to predate on Dorylus (Anomma) congolensis, which indicates its extreme dietary adaptability (Delsinne et al. 2015). It is an egg-laying species, and animals occur in small colonies consisting of a male and several females and juveniles (Mediannikov et al. 2012).

The Common Agama was formerly considered to occur throughout most of sub-Saharan Africa, however, recent taxonomic revisions indicate that this lizard is mainly distributed in West and Central Africa (Trape et al. 2012). Its full distribution remains unclear. Localities confirmed through molecular research include those in southern Mauritania, Senegal, Guinea, Guinea-Bissau, southern and central Mali, Liberia, Côte d'Ivoire, Ghana, Togo, eastern Burkina Faso, Benin, Niger, Nigeria, Chad, and Tchimbele Dam in Gabon (Mediannikov et al. 2012). In Gabon it has also been recorded from a site along the Ogooué River (Pauwels et al. 2018). Most records from Cameroon are attributable to Agama wagneri, however, there is a genetically confirmed record of A. agama from Yaoundé (Mediannikov et al. 2012). Occurrences in towns and villages in Central, and the humid forest zone of West Africa are considered to represent introductions, as natural populations are replaced by other Agama species in these areas (Mediannikov et al. 2012). Molecular evidence indicates that a single recent introduction to Santo Antão in the Cape Verde Islands (Vasconcelos et al. 2011) also represents this species.

The occurrence of an introduced population of this species in Madagascar is based on a photograph of a single animal on a wall, supposedly at the airport north of Antananarivo (F. Glaw pers. comm. January 2011). Attempts to find the species at the airport have so far been unsuccessful and it is possible that the photograph may have instead been taken at a nearby crocodile farm (Wagner et al. 2009). Its presence in Madagascar is here treated as unconfirmed. The identity of this and other introduced populations on Indian Ocean islands is in need of clarification due to uncertainty over the taxonomic identity of many records formerly assigned to this species.

Its range includes several protected areas. Taxonomic research is needed to further resolve the identity of members of this species complex, and to establish the true limit of the common agama's distribution.