The usual habitat is eucalypt forest or woodlands, but its distribution is mostly associated with marri (Corymbia calophylla). This tree species provides a constant food source and has increased in range and population since the settlement of Europeans. The parrot can be found in vegetation dominated by other tree species such as jarrah (Eucalyptus marginata), tuart (E. gomphocephala), wandoo (E. wandoo), yate (E. cornuta), and peppermint (Agonis flexuosa). A seed-eating bird, it is encountered in farmland, orchards, and suburban landscapes in Perth. It also occurs around remnant stands of marri conserved as shade trees on farmland in the western Wheatbelt and Swan Coastal Plain. It can be adversely impacted by land clearing and removal of trees. The red-capped parrot uses large trees to roost in at night and retire to during the middle of the day. It generally avoids blue gum (Eucalyptus globulus) and pine plantations.
