[2] It is found in arid environments in the southwestern United States and Mexico where it lives in a burrow by day and forages for seeds and plant matter by night.

On the surface, a characteristic mound develops as the animal digs and repairs tunnels, and removes old bedding, spoiled food and seed husks.

In a research study where the rats were fitted with radio-tracking equipment, individuals had a home range of about 450 m2 (4,844 sq ft) which overlapped slightly with that of its neighbours.

The foodstuffs collected and carried in the cheek pouches were seed heads and grass tufts and were stored in layers in the burrow in chambers up to 25 cm (10 in) in diameter.

[7] The banner-tailed kangaroo rat has very specific habitat requirements and if threatened by invasion of the open desert grassland by creosote bush, mesquite and other woody plants.