The Gouldian finch was described by British ornithologist John Gould in 1844 as Amadina gouldiae,[3] in honour of his deceased wife Elizabeth.

Formerly considered three different kinds of finches, it is now known that these are colour variants of one species that exist in the wild.

[11] Selective breeding has also developed mutations (blue, yellow and silver instead of a green back) in both body and breast colour.

[1] The number of Gouldian finches in the wild decreased dramatically in the 20th century due to human-caused habitat loss.

[citation needed] The primary threat to wild Gouldian finch populations is an increase in extensive wildfires in the late dry season of its native habitat, which negatively impacts the availability of both tree hollows for breeding, and the seeds that comprise the bulk of the Gouldian finch's diet.

[15][19] Cyclones and climate change have also negatively impacted tree hollow availability in the Northern Territory.

[22] During the breeding season, Gouldian finches mainly feed on ripe and half-ripe grass seeds of sorghum.

So far Gouldians have been recorded eating six different species of grass seed, but researchers have yet to find evidence of insect consumption.

[24] When a male is courting a female, he bobs about and ruffles his feathers in an attempt to show off his bright colours.

[24] Gouldian finches have brightly coloured gapes and call loudly when the parent birds return so that they are able to find and feed their mouths in the dark nest.

[25] It has been shown that female Gouldian finches from Northern Australia can control the sex of their offspring by choosing mates according to their head colour.

[26][27] Gouldian finches are a popular species in aviculture because of their striking colours and low care requirements.