It is found in most of Vietnam, the entire country of Laos, most of eastern Cambodia, northern Thailand, in most of Myanmar (except for Tanintharyi Region), in the Yunnan province of China, in far east Bangladesh (extremely rare), nearly all of Northeast India, and far southeast Bhutan.

The global population size is not known, but this bird is reported to be uncommon in China, with varying statuses everywhere else.

It is found in elevations of up to 2,700 meters in forests consisting of oak, teak, pine, and cedar trees.

The grey headed parakeet has a widely varied diet of different species of leaf buds, seeds, fruit, berries, and flowers.

Deforestation and logging of the bird's natural forest habitat is also making a negative impact on the parakeet's population.