It is normally found during the day at depths between 15 and 80 ft (5–25 m), but can be found from 10 to 165 ft (3–50 m) The stoplight parrotfish inhabits shallow coral reefs not disturbed by humans in Florida, the Caribbean Sea, Gulf of Mexico, Bermuda and Brazil. They are only active during the day and spend most of their time foraging, swimming, or hovering. At night, they remain hidden under coral boulders. Large individuals typically spend more time swimming and spend a significant amount of time sheltering among crevices, while smaller individuals spend more time hovering. The stoplight parrotfish have a high density in areas of higher algal production. As adults, the stoplight parrotfish are site-attached with limited home ranges.