It typically inhabits thickets at the edges of moist forest, tall secondary growth and old cacao plantations.
It hybridizes extensively with the golden-collared manakin in a limited area in Bocas del Toro Province, Panama.
The hybrids, which show a lemon yellow collar in males, were at one time considered a distinct species, the almirante manakin (Manacus×cerritus) (Brumfield et al., 2001; McDonald et al., 2001).
The white-collared manakin is, like its relatives, a compact short-tailed bird with a heavy hooked bill, orange legs and brightly coloured male plumage.
The rest of the head, neck, breast and upper back are white, the rump is olive-green, and the belly is bright yellow.
The female lays two brown-speckled white eggs in a shallow cup nest 1–3 m high in a horizontal tree fork.