This largely arboreal species is found in wet tropical forest. Most records are from evergreen forests, and just a handful of sightings are from semi-deciduous forests. It can be found in regenerating secondary forests and shady agroecosystems, such as cabrucas (cocoa plantation under native forest in southern Bahia). Maned sloths are active at day and at night, although more regular activity occurs during the day. Maned sloths climb slowly and positioning themselves on undersides of branches. The longest single movement that has been recorded of a maned sloth was more than 300 m in 5.5 hours. Home ranges have been estimated at 1–13.7 ha. Longevity in the wild is at least 12 years.

The IUCN SSC Anteater, Sloth and Armadillo Specialist Group has recently assessed the conservation status of this species. The assessment is currently under review.

Bradypus torquatus is considered to be Endangered because it has a restricted area of occupancy (i.e., area of suitable habitat) based on remaining forest within its highly fragmented range. Its area of occupancy and habitat are in continuing decline due to ongoing habitat loss and degradation in the Brazilian Atlantic Forest. Furthermore, this species, like all sloths, is susceptible to vehicle collisions, a growing impact considering current and future city sprawl and road development in the region of the Atlantic forest occupied by the species. Poaching or capture for the illegal animal trade might be minor threats whose impact, nevertheless, should not be ignored, particularly in smaller forest fragments where the population is down to a few individuals.