The Swallow-tailed Cotinga is distributed in south-east Brazil from central Bahia to Rio Grande do Sul. There is a disjunct population in western Bolivia.

It is found in forest borders and in more open areas with trees including gardens. It feeds mainly on fruits such as those of the mistletoe family but also eats insects.

It is classified as Near Threatened by Birdlife International  because of the loss of habitat in south-east Brazil.