It is found in shola habitat in a small section of the Western Ghats in southwestern Karnataka and northern Kerala.

Within this range, fragmented populations are found at Banasura Hill in Wayanad, Chembra Peak, and Vellarimala.

The Banasura laughingthrush forages in the shola midstory and lower canopy by hopping among branches, feeding primarily on fruits and insects.

[2] The Banasura laughingthrush's range is also highly fragmented, rendering the species even more vulnerable to declines due to habitat loss and degradation.

[6] The Carmel Hump Mountains Important Bird Area was designated specifically to protect crucial habitat for the Banasura laughingthrush.