The Wire-crested Thorntail is distributed on the eastern slope of the Andes from Colombia through Ecuador to Peru with a few records in the extreme north of Bolivia. See the distribution map at Birdlife International. It is found in the canopy and borders of humid forest.

Given the threat to its habitat, it is classified as Near Threatened.

The male has a long, wiry crest and a long, forked tail. Like all Thorntails it has a conspicuous white band on its rump. It also has orange leg puffs.