It is found in Belize, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, and Panama.

[3] The International Ornithological Committee (IOC) treats the Central American pygmy owl as monotypic.

However, the Clements taxonomy and Handbook of the Birds of the World recognize three subspecies, the nominate Glaucidium griseiceps, G. g. occultum, and G. g.

It has been reported to lay a clutch of two to four eggs in April and May, using a natural cavity or old woodpecker hole for the nest site.

The Central American pygmy owl's song "begins with 2–4 equally spaced hoots, followed by [a] very brief pause, then [a] series of 6–18 very similar notes, 'huu-huu, huu-huu-huu...'".