The natural habitats of the chestnut-throated seedeater are subtropical or tropical dry shrubland, subtropical or tropical moist shrubland, swamps, sandy shores, and heavily degraded former forest along the Pacific coast and montane uplands of western South America, primarily Ecuador, Peru, and Chile.

The species serves as an indicator of declining forest health, as their populations appear to increase following deforestation and land use change.

Females share a similar color pattern, but lack the throat patch, with a lighter bill, but moult into drab plumage outside of the breeding season.

This occurs because the cost of colorful plumage attracting predators is no longer worth taking when breeding activities are completed.

These songbirds are among the smallest members of the tanager family at approximately 4.0 inches in length, and possess powerful bills to harvest grass seeds.