Queen angelfish inhabit warm tropical and subtropical waters throughout the western Atlantic Ocean. Their range extends from southern Florida and the Florida Keys through the Bahamas, Bermuda, the Gulf of Mexico, the Caribbean Sea, and southward along the northern coast of South America to Brazil.

Coral reefs form the center of their world. Adults are commonly found around reef walls, coral outcroppings, and rocky structures where sponges and other food sources grow in abundance. These reef environments provide shelter, feeding opportunities, and spawning grounds throughout the year.

Young queen angelfish often occupy entirely different habitats. Juveniles are frequently found among mangrove roots, seagrass beds, and shallow coastal lagoons where they gain protection from predators before eventually moving to offshore reef systems. This connection between coastal nurseries and coral reefs highlights the importance of protecting multiple Atlantic habitats to support healthy populations.