Atlantic halibut inhabit cold temperate and subarctic waters across the North Atlantic Ocean. Their range extends from the northeastern United States and eastern Canada across Greenland, Iceland, and the British Isles to Norway and portions of the Barents Sea. Adults typically occupy depths ranging from about 150 to more than 6,500 feet, although many are found along continental shelf edges and offshore banks.

Young halibut often use shallower coastal habitats as nursery grounds before gradually moving into deeper offshore environments. Sandy bottoms, gravel plains, and rocky substrates provide ideal habitat where the fish can camouflage themselves while waiting for prey.

Some of the most important Atlantic halibut regions include the Grand Banks of Newfoundland, Georges Bank, the Gulf of St. Lawrence, Icelandic waters, and the Norwegian continental shelf. These productive ecosystems support abundant prey and suitable spawning habitat.