The Pied Kingfisher is a scarce breeding resident dependent on the larger wetlands with open water. It also frequents the larger village ponds and waterways, especially where there are overhead wires. They are sociable birds and seem to be noisier the more they socialize with each other. Pied Kingfishers feed exclusively on fish and many potentially suitable sites are now too polluted for them to occupy. Although they will dive from perches, including telegraph wires, they prefer to hover over open water from around 10 metres height. If the water is not clear they would struggle to see anything other than fish swimming on the surface. The sight of a hovering and diving Pied Kingfisher is one to be savoured and an indication of a reasonably healthy wetland.

It breeds from October to April excavating its own nest tunnel in a sand or mud bank, usually adjoining water.  When breeding it can be very noisy and obvious and in some parts of India several pairs may breed in close proximity. The sexes can be separated easily as the male has two breast bands and the female only one.