The Restless Flycatcher is distributed in most of Queensland except the far north and far west, New South Wales, Victoria, the south of South Australia and the south-west of Western Australia. It is found in open forest and woodland as well as near river red gums and scrublands.

One of its calls is a grinding sound which it makes while hovering a metre or so above the ground. The sound seems to disturb its insect prey and, after falling silent, it pounces on its prey which it then takes to a nearby perch to consume.