Indo-Pacific: most islands of Oceania except Hawaiian Islands, Marquesas, and Pitcairn Group; also Australia north to the Ryukyu Islands. In the Indian Ocean, there are confirmed records Seychelles, Thailand and Western Australia.

Often confused with Chromis viridis. This species differs from the smaller blue-green C. viridis, by possessing a distinct black blotch on the inner pectoral axil.

Inhabits clear lagoons, passages, and seaward reef slopes, in thickets of live or dead coral. Occurs in large aggregations feeding above staghorn Acropora corals.