The International Union for Conservation of Nature has listed the species as being critically endangered, due to population decline.

In the 1860s, the Seychelles sheath-tailed bat was reported to fly around clumps of bamboo towards twilight, and in the daytime to be found roosting in the clefts of the mountainside facing the sea and with a more or less northern aspect.

Although the species is not a specialist and has a high reproductive potential, it is very vulnerable to disturbance and requires several roost sites within healthy habitat.

The Seychelles sheath-tailed bat has suffered from habitat deterioration due to the effects of cultivation of coconut plantations and the introduction of the kudzu vine, both of which have reduced the incidence of scrub and the availability of insect prey.

[3] There are a few different and important variables that can affect acoustic signals and soundwaves, first of which includes time/length (temporal character) of the calls by an individual.

[3] Temporal control can be important in perceptual organization of echoes as they are returning back to a source individual from various directions and distances.

[3] The speed (frequency) that an individual calls also can become faster as they close the distance between themselves and a food source, which is how they hunt flying insects such as Lepidoptera.

[4] The speed at which calls can be adjusted from an individual also is important to keep track of each echo in more complex audio terrain.

[3] In order to use echolocation effectively bats have gone through much evolution to specialize in this method of movement and hunting.

[5] The highly derived spiral ganglion structure of the inner ear in Yangochiroptera, the suborder of Coleura seychellensis, is referred to as a trans-otic ganglion with a wall-less Rosenthal canal and is what makes echolocation work so well in bats of a similar evolutionary pathway.

Similarly, short multi-harmonic calls are ones that also have 4 narrowband FM harmonics but in under 2 ms.[6] The structure of calls can be altered for a specific need, they can be faster, slower, louder, or quieter from a source individual depending if they are hunting, navigating, communicating, protecting territory, or courting a mate.

[8] At the same time females vocalize a screech that can last up to 300 ms and are related to territorial conflicts and response to males hovering, these calls, also vocalized by males, typically have a duration of about 97 ms.[8] Territorial songs are the most noticeable vocalizations in a colony with 10-50 tonal calls that first have an upward FM, then a V-shaped call in the middle, ending with a lower fundamental frequency that is headed by a noisy buzz.