Habitat conversion due to agriculture (plowing of fields) and cattle ranching (compaction of soil) are thought to be threatening this species, but predation by domestic cats and dogs may also contribute to its decline. Furthermore, the species is illegally collected to be kept as a pet or with the intention to sell it on the black market, but the large majority of specimens removed from the wild die within eight days.

This poorly known, nocturnal species is found in dry grassland and sandy plains with shrubby vegetation, always on sandy soils. It has subterranean habits and emerges only occasionally. No information is available about its home range, population size or density. It may be relatively rare, as records are very isolated from each other.

Not much is known about the reproduction of this species. It probably gives birth to one or two offspring in spring or early summer.

The pink fairy armadillo is listed as Data Deficient because there is little information on the population status of this species, and its biology and ecology are poorly known. Throughout its range there is extensive habitat degradation, especially from cattle and goat ranching, but the actual effect on the population is not well understood. Collection of individuals to keep them as pets or sell them on the black market are increasingly threatening the species, as it does not survive in captivity. The species remains a priority for further survey work, as the availability of additional information may well show that the species requires listing as Near Threatened or in a threatened category.