Its range extends from Eastern Europe through the Middle East, Russia and Central Asia to Mongolia and western China.

[4] The grey dwarf hamster is found in parts of Eastern Europe and Asia including Afghanistan, Armenia, Bulgaria, China, Iran, Iraq, Israel, Jordan, Kazakhstan, Lebanon, Moldova, Mongolia, Pakistan, Romania, Russia, Turkey, and Ukraine.

It originally inhabited dry grasslands, arid steppes and semi-deserts, but it has spread into cultivated land and gardens, and even sometimes into buildings.

It digs a deep burrow complex that may extend 150 cm (59 in) beneath the surface of the ground and which includes side passages, several nesting areas and chambers to store food for use in winter.

In some areas such as the Balkans it is rare, but in others it is abundant, being more common than the house mouse (Mus musculus) in Armenia and Kyrgyzstan.