The White-shouldered Fire-eye is distributed in the Atlantic Forest of south-east Brazil and adjacent eastern Paraguay and extreme northern Argentina. It is found in the viny and tangled undergrowth often near bamboo.

The male is glossy black with a bright red eye and white wing-bars. It also has a white interscapular patch which is often hidden. The female is brown above with a dark tail and lighter, yellowish-brown underparts. It also has a red eye.

It feeds on a variety of insects and is often, but not always, associated with army-ant swarms that drive the insects from cover. They are usually in small family groups and are very active and difficult to photograph.

There are recordings and a distribution map on xeno-canto .