The Pearl Kite is found in semi-arid or deciduous woodland and savannah in South America from the Colombia east through Guyana and south in Paraguay and northern Argentina, west to eastern Bolivia and Peru. An isolated population exists in western Ecuador and north-western Peru and another in western Nicaragua. In Suriname a rare bird, only records are from Nickerie.

This species is found in open savanna habitat adjacent to deciduous woodland.

A nest is built relatively close to the ground (varying 5-20 meter) at the extreme tip of a small branch of a scrub-oak or similar tree in woodland. The nest is often not concealed and has the appearance of that of a mockingbird. A small cup 20 cm wide and 10 cm deep. It is composed of small dry twigs loosely laid together. The clutch is 2-4 brown-marked white eggs, incubated mainly by the female for 34-35 days to hatching, with a further 5 weeks to fledging. There may be two broods in a season.

The falcon-like proportions and sharp talons of this little raptor indicate a departure from the usual feeding habits of kites, and its main food supply seems to consist of small birds. It is also known to eat lizards and large insects.

This species has a large range, with an estimated global Extent of Occurrence of 10,000,000 km2. It has a large global population estimated to be 10,000-100,000 individuals (Ferguson-Lees et al. 2001). Global population trends have not been quantified, but the species is not believed to approach the thresholds for the population decline criterion of the IUCN Red List (i.e. declining more than 30% in ten years or three generations). For these reasons, the species is evaluated as Least Concern.

Sedentary in all of its range, although yung disperse after fledging.