Indo-Pacific: Red Sea to the western Pacific, north to the Ryukyu Islands, south to Rowley Shoals; Palau, Guam and Marshall Islands in Micronesia.

Lives in areas with patches of fine carbonate sand on subtidal reef flats and seaward reefs. Uses the burrow of Alpheus rubromaculatus for refuge. Constantly waves its large, spotted, fan-like pectoral fins as it hovers close above the entrance to its burrow. Lives in coastal to outer reef habitats in shallow depth to about 10 meters, commonly found on sand and rubble patches close or shaded by low overhanging corals