Its natural habitat is subtropical or tropical moist lowland forests. It is becoming rare due to habitat loss.
The Oustalet's Tyrannulet is classified as Near Threatened (NT), is close to qualifying for or is likely to qualify for a threatened category in the near future.
The Oustalet's Tyrannulet (Phylloscartes oustaleti) is a species of bird in the Tyrannidae family. It is endemic to Brazil. Its natural habitat is subtropical or tropical moist lowland forests. It is becoming rare due to habitat loss. Source - * BirdLife International 2004. Phylloscartes oustaleti. 2006 IUCN Red List of Threatened Species. Downloaded on 26 July 2007. More