The Grey-and-white Tyrannulet is distributed in south-west Ecuador and north-west Peru. See the distribution map at Birdlife International. It is found in arid scrub and dry forest up to 800 metres.

It is grey above and mainly white below with whitish wing-bars. It has a crest with a white centre which is often concealed. It forages for insects on the tops of bushes and often moves with a horizontal posture.