The Bicolor Damselfish inhabits shallow coral reefs and isolated patch reefs in deeper waters in the Caribbean, South Florida and the Bahamas. It is one of the few fish that produce sounds; males make a chirping noise to attract females. Damselfish are extremely territorial. Each individual will claim a small area, usually a group of rocks and its crevices, and will not allow any other fish to enter this area. Even larger fish are chased away.