Microspathodon bairdii occurs on rocky inshore reefs exposed to wave action and currents, being found down to . It is most frequently recorded in the vicinity large boulders in the shallow subtidal zone. In the
Gulf of Chiriquí, Panamá, the bumphead damselfish is found among huge corals and exposed shallow rocky reefs. It is mainly herbivorous, feeding on algae, but will take a hook baited with animal matter and will readily eat meat in the aquarium. They form pairs to breed and the eggs are laid in crevices in rocks where there is a strong current, on the leeward side of the current. The eggs are hoarded and aerated by the male. ==Etymology==