It occurs in coral and rocky reefs at depths of 3 to 40 m. Dascyllus flavicaudus can grow to a size of 12 cm in length.

[1] With the exception of the yellowish to yellowish-white tail and the bright rear portion of the dorsal fin, their body is dark, blackish-brown to blackish-bluish.

During matings time the males usually turn a shade or two darker, sometimes with white spots.

Adults form a permanent harem, with one male and several females close to coral heads.

They are substrate spawners and stick their spawn in a cave or hidden niche.