The peacock mantis shrimp is widespread across the warm, tropical and subtropical marine biomes of the Indo-Pacific region. Its geographic range extends from the eastern coast of Africa through the Maldives, into the dense reef networks of Indonesia and the Philippines, reaching as far south as northern Australia and eastward to Japan.
They are highly benthic (bottom-dwelling) animals that inhabit the complex, three-dimensional structures of fringing coral reefs, rocky tidal flats, and sandy seagrass beds at depths ranging from 10 to 100 feet. Odontodactylus scyllarus is an obligate burrower. It utilizes its powerful maxillipeds to excavate U-shaped burrows deep into the sand or coral rubble. These burrows serve as fortified operational bases from which the mantis shrimp hunts, sleeps, and rears its young, defending the entrance ferociously against any intruders, including much larger fish or rival stomatopods.
Reef predators such as the lionfish share parts of this Indo-Pacific habitat but hunt in the open with a different set of adaptations.