Collared Kingfishers were for many years known as Mangrove Kingfishers because in Australia, they mainly inhabit mangroves. They range widely overseas but in Australia occur all around our northern coastline, north from Shark Bay in W.A. and down to Yamba in NSW. Birds from SE Qld and NSW are migratory, arriving in September and leaving in March whereas those from northern regions appear to be resident.

Collared Kingfishers establish territories in the mangroves which also usually include an area of mudflats where they feed at low tide. Suitable nest holes are not always available in the mangrove trees so the birds resort to nearby trees on the landward side - often aboreal termite mounds are used to drill into.