It resembles the jungle owlet in shape, size and appearance but the upperparts, scapulars and wing coverts are mainly chestnut brown, with darker barring.

The chestnut-backed owlet is a common resident bird in the wet zone forests of Sri Lanka, and can be seen easily at sites such as Kitulgala and Sinharaja.

Historical reports of its distribution by Legge include many parts of the southern half of Sri Lanka, especially the hills and the wet-zone low country extending to the outskirts of Colombo.

In recent times, its range has shrunk greatly, and it is now found sparingly in the remaining forests of the wet zone and the adjoining hills at altitudes of up to 6,500 ft (2,000 m) above sea level.

In Sri Lanka, this bird is known as Pitathabala Vana-Bassa (පිටතඔල වන බස්සා in Sinhala).