It has a highly restricted range, being found only in the estuary of Derwent River, Tasmania, and nearby areas, with the main threat to its existence being an invasive species, the Northern Pacific seastar (Asterias amurensis).

The spotted handfish is an unusual fish, in that it has highly adapted pectoral fins, which appear like hands (hence the name) and allow it to walk on the sea floor.

It tends to prefer complex habitats with features such as depressions and ripple formations filled with shells to avoid predators.

Handfish have a short pelagic larval period; their eggs hatch after 7–8 weeks as fully formed juveniles (6–7 mm SL).

[14] All handfish species are protected under the Tasmanian Living Marine Resources Management Act 1995, which prohibits their collection in State waters without a permit.

[18] Since the seastar, native to Japanese waters, was established in the Derwent River and estuary in the 1980s,[18] efforts have been made to control its spread in Australia.