The Booted Racket-tail, as defined by Birdlife International, is distributed from Venezuela through Colombia, Ecuador, Peru and Bolivia. See the distribution map at Birdlife International. It is found in humid forest on the east slope of the Andes at between 1,000 and 2,400 metres.

Other authorities split the species into White-booted Racket-tail O. underwoodii in the north, Peruvian Racket-tail O. peruanus in Peru and Ecuador and Rufous-booted Racket-tail O. addae in Bolivia.