This species inhabits lagoons and coastal and outer coral reefs. It forms a commensal relationship with sea anemones (i.e., Cryptodendrum adhaesivum, Entacmaea quadricolor, Heteractis aurora, H. crispa, H. magnifica, H. malu, Macrodactyla doreensis, Stichodactyla gigantea, S. haddoni, and S. mertensii) (Fautin and Allen 1992, Litsios et al. 2012, Fricke et al. 2014, Fricke et al. 2019). It has been observed to share its home anemone with individuals of Amphiprion sandaracinos (Bos 2011). Its monogamous, exhibiting distinct pairing while breeding (Whiteman and Côté 2004). It is a protandrous hermaphrodite. In the Philippines, spawning season occurs from November to May when temperatures are below 30°C (Holtswarth et al. 2017). It is a demersal spawner that exhibits paternal egg care (Anto et al. 2009). It produces elliptical, demersal eggs that adhere to the substrate (Thresher 1984). Longevity has been reported at 11 years in the wild (Moyer 1986, Carey and Judge 2000). The maximum standard length is 15 cm (Anderson and Hafiz 1987).

Localized threats to this species include loss of habitat, including anemones (J. Burt pers. comm. 2013). It is collected in the aquarium trade, and occasionally taken as bycatch. The host anemones may be vulnerable to periodic bleaching events, as well as to targeted collection for the aquarium trade.  

This species is potentially impacted by the overexploitation of its host anemone; Shuman et al. (2005) found that although there were similar numbers of this species in protected and exploited sites, the biomass of this species in the exploited sites was lower per unit area of anemone. Major impacts come from numerous industrial, infrastructure-based, and residential and tourism development activities, which together combine, synergistically in some cases, to cause the observed deterioration in most benthic habitats.

Substantial sea bottom dredging for material and its deposition in shallow water to extend land or to form a basis for huge developments, directly removes large areas of shallow, productive habitat, though in some cases the most important effect is the accompanying sedimentation or changes to water flows and conditions. The large scale of the activities compared to the relatively shallow and small size of the water body is a particularly important issue. It shows that cumulative impacts and exploitation are all contributing to a general but marked decline in the Persian Gulf’s health (Sheppard et al. 2010).