Despite its dandyish plumage, the blue-and-yellow macaw is remarkably well camouflaged in its rainforest habitat. They found in Central and South America, from eastern Panama south through the Amazon basin to northern Bolivia and southeastern Brazil; also on Trinidad.

The blue-and-yellow macaw spends much time under the cover of canopy foliage or fronds of tall palms to avoid being detected by large eagles — its main predators. When it takes to the air, its rich colors and screeching calls make it highly conspicuous; to compensate, it flies quickly and directly through the trees. Most blue-and-yellow macaws live in pairs or family groups. Pairs may join other blue-and-yellow macaws to form flocks, especially at feeding or roosting sites and during trips to and from these areas. Large congregations also gather at clay-licks: cliffs of bare clay exposed by river erosion. Here, the macaws cling to the surface and nibble pieces of clay. This may help detoxify the potentially harmful chemicals in some food, especially unripe fruits, which produce toxins for their defense. Clay may also provide essential minerals, such as calcium, that are otherwise lacking from the bird’s diet.