The species wanders indoors at times, especially into damp locations, such as bathrooms; however, it prefers the outdoors and is not considered a major pest in the home.

It can be found in sheltered outdoor locations, such as under leaf litter, in tree holes, and under lumber and boards, and other crevices, as well as in bushes and wooded areas.

[4] It is not to be confused for the American cockroach (Periplaneta americana), another common Florida insect, that is sometimes also referred to as a palmetto bug.

[2] When alarmed, adults can emit an extremely foul-smelling glandular secretion through a sternal membrane, ejected up to 1 m (3.3 ft).

[2] In tests with two species of mice abundant in central Florida, the chemical defense was found effective at deterring predation by Peromyscus polionotus, but at least some Peromyscus gossypinus mice were able to avoid chemical exposure by pushing the cockroach's abdomen downward and feeding from its head end.

[10] Natural habitats of the species include holes in dead trees, stumps, and woodpiles, cavities beneath bark, and sometimes leaf litter.

Not uncommonly, palmetto bugs become established inside attics, where they commonly leave behind their distinctively large droppings along with occasional body parts from dead specimens.

The species is reported in the West Indies and in a limited southeastern region of United States, consisting of the state of Florida, and coastal regions of Alabama, Georgia, South Carolina, Mississippi, Louisiana, south and southeast Texas, and southeast North Carolina.