Adults are found in a variety of habitats, but generally prefer hard, sandy bottoms; juveniles settle in high salinity seagrass beds.

Many species of fishes, including P. albigutta, have experienced declines in abundance in the Northern Gulf of Mexico from 1970 to 2000; although Fodrie et al. (2010)[6] attributed this at least in part to the effects of global rises in sea temperature, there are also a number of other factors (e.g., bycatch in trawl fisheries, increased recreational landings: T. Munroe pers.

Gill netting has been implicated in the decline of flounder stocks in North Carolina due to targeting of non-reproductive juveniles; however, the population-level effects of this method of harvest on P. albigutta are unknown.

[1] This demersal species occurs in shallow depths within estuaries and coastal environments; it is most commonly found on the continental shelf at depths of 18–92 m, but has been collected to about 130 m. It is found in a variety of habitats, including seagrass beds,[7] coastal lagoons, flat hard-bottom and limestone ledges.

[9] Juveniles inhabit high salinity seagrass beds and older adults occur offshore in deeper depths.

[7] Adults spend most of the year in bays and estuaries, migrating into deeper offshore waters to spawn during fall and winter (peaking between late October and mid-December).

[10][1] Gulf flounder appear to prefer the ocean floor and camouflage against areas to stealthily strike their prey.

[11] The large seagrass die-off in Florida Bay between 1987 and 1995 was likely caused by salinity stress, turbidity, and algal blooms.

Between 1995 and 2003, turtle and shoal grass abundance increased with improved water clarity and has remained generally stable.