Forest Kingfishers inhabit the top end of the N.T. and eastern Australia from Cape York south to about the Hunter Valley in NSW. In the southern parts of their range they are migratory. Forest Kingfishers are a "dryland" species and live in forests and woodlands feeding on invertebrates, small reptiles, frogs and worms. They very rarely pursue prey in water. Along the roadsides, overhead power lines have become a favoured vantage point.

Some people have trouble in distinguishing Forest from Sacred Kingfishers - apart from the rich royal blue upperparts and white underparts, Forest Kingfishers have a clear white loral spot - in Sacreds this spot is ochre/buff coloured. In flight, Forest Kingfishers display a white wing patch, absent in Sacreds.