It is a solitary, largely nocturnal and arboreal animal, found in mature and secondary rainforests and deciduous forests.

[3] Hoffmann's two-toed sloth is a heavily built animal with shaggy fur and slow, deliberate movements.

Other features that distinguish it from three-toed sloths, which may be found in the same geographic areas, include the longer snout, separate rather than partially fused toes of the forefeet, the absence of hair on the soles of the feet,[4] fewer dark markings around the eyes,[4] and larger overall size.

The primary physical differences between the two species relate to subtle skeletal features; for example, Hoffmann's two-toed sloth has three foramina in the upper forward part of the interpterygoid space, rather than just two,[4] and often – but not always – has fewer cervical vertebrae.

Their fur is tan to light brown in colour, being lighter on the face, but usually has a greenish tinge because of the presence of algae living in the hairs.

[4] Based on cytochrome c oxidase subunit I sequences, a divergence date of about 7 million years between these populations has been suggested.

Most of the two-toed sloths activity takes place hanging upside down but when it comes time for urination and defecation they make their way to the ground.

[9] Hoffmann's two-toed sloth inhabits a range of different trees within its habitat, although it seems to prefer those with plentiful lianas and direct sunlight.

[4] The name "sloth" means "lazy", but the slow movements of this animal are actually an adaptation for surviving on a low-energy diet of leaves.

The sloth spends almost its entire life, including eating, sleeping, mating, and giving birth, hanging upside down from tree branches.

[13] While terrestrial locomotion is usually thought to involve the sloth lying on the ground and pulling themselves forward, they have actually been seen walking on their palms and soles.

[4] There have also been increased rates of attack on Hoffmann sloths by domestic dogs, particularly in arboreal areas that are in the process of development and urbanization.

The sloth's slow, deliberate movements and algae-covered fur make them difficult for predators to spot from a distance.

[25] Though two-toed sloths also eat buds, tender twigs, young plant shoots, fruits and flowers, most of their diets consist of tree leaves.

[28] Due to their low concentrations of 7-dehydrocholesterol, it is believed that two-toed sloths cannot synthesize vitamin D through skin contact with sunlight.

[33] Although relatively quiet as adults, young sloths make loud bleating alarm calls if separated from their mothers.

[26] In captivity, the two-toed sloth was seen giving birth by hanging upside down and attempting to pull the infant between her hind limbs and onto her abdomen.

The hair grows in a special system of being parted along the stomach and flows from belly to back; this is useful for when sloths are hanging upside down and the rainwater can run off.

[9] Currently, Hoffman's two-toed sloth is rated at Least Concern by the International Union for Conservation of Nature (IUCN), but is still faced with numerous threats.