Western Pacific: Peninsular Malaysia to Hong Kong and the Ryukyu Islands, south to Western Australia, and east to Vanuatu and the Gilbert Islands. Replaced by an undescribed species at Fiji and Tonga and Pseudochromis coccinicauda in the Indian Ocean.

Females sexually dichromatic dottyback are uniformly grey, sometimes becoming yellowish or reddish on the tail.

A common but secretive species found in holes and crevices of exposed outer reef flats and reef margins. Occurs in pairs and feeds on small crabs, isopods, and copepods.