The Amazonian Oropendola is distributed in the Amazon Basin with the exception of the area north of the Amazon river and east of Manaus.

Some authorities such as Jaramillo & Burke, split the species into Amazonian (or Olive) Oropendola Psarocolius yuracares and Pará Oropendola Psarocolius bifasciatus which is found in lower Amazonia. Others such as Ridgely & Tudor, Haffer and the Brazilian Ornithological Records Committee treat them as sub-species. The HBW and Birdlife International checklist makes the split and uses the English name Amazonian Oropendola. See the distribution map at Birdlife International.

It is found in terra firme forest and forest edges.

It nests in small colonies where it builds long, hanging basket nests. The bowing display, which it shares with other Oropendolas, is quite spectacular and is accompanied by a very distinctive song.