It is found in Belize, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Peru and Panama.

The bird is probably best known for the male's unusual courting method whereby he shuffles rapidly backwards across a branch, akin to a speedy moonwalk.

The red-capped manakin was formally described and illustrated in 1857 by the English zoologist Philip Sclater based on specimen collected by Auguste Sallé in Córdoba, Veracruz, southern Mexico.

[7] Most are resident, but some individuals are known to migrate to take advantage of changing food resources: the number of red-capped manakins caught in mist nets at La Selva Biological Reserve, in eastern Costa Rica, tripled in January and February, when a favored fruit ripened, for example, while the number caught at a nearby higher elevation site (where the fruits were not found) dropped to zero.

[12] Seeds from a variety of plants are consumed; one study in Costa Rica found evidence of 70 species, including those from the genera Clidemia, Hampea, Henriettea, Leandra, Miconia, Ossaea, Pinzona and Psychotria, in the fecal droppings of red-capped manakins.