[1] Steinitz' goby is found in shallow parts of the Red Sea and adjoining western Indian Ocean, the Chagos Archipelago and Mauritius,[3] the Marshall Islands, the Seychelles, southern Japan and the Great Barrier Reef.

[4] It is usually found on sandy bottoms on reef flats, outer lagoons, estuaries and bays at depths down to 43 metres (141 ft).

The entrance may be reinforced by shell and coral fragments particularly before nightfall but still may collapse during the night, a time during which both partners remain inside the burrow.

[4] During the day the goby rests on the burrow floor, half out of the opening, or may make forays further afield to feed.

The goby distinguishes between predators, bottom-stirring fish that may damage the burrow and harmless species and reacts appropriately.