Its range extends in decreasing abundance around the southern coast of Africa and into the Indian Ocean, but it is at its most plentiful in the cold, nutrient-rich fishing grounds of the Benguela Current.

In South Africa, in combination with Merluccius capensis, the shallow-water Cape hake, it is one of the most important commercial food fishes and locally is generally known as "stockfish" (this English name being derived from the Afrikaans stokvis).

It usually is to be found at depths of 200 to 850 m, although most commonly below 400 m. Immature specimens feed on small deep-sea fishes and crustaceans, especially Euphausiacea.

The deep-water Cape hake is often fished together with M. capensis, which usually occurs at shallower depths.

Most reported commercial catches combine both species, but towards the northwest coast of Southern Africa, in the region of Angola, M. paradoxus does not occur.