The stripe-faced dunnart's distribution covers a broad area of central and northern Australia, from the
Pilbara to central Northern Territory, western and central Queensland, south to north-east South Australia to north and west New South Wales. The species also inhabits a range of habitats, mainly within arid regions, occurring in low shrublands containing saltbush (
Atriplex spp.) and bluebush (
Maireana spp.), in spinifex grasslands on sandy soils, among sparse
Acacia shrublands, in tussock grasslands on clay, sandy or stony soils, on open salt lakes, and on low, shrubby, rocky ridges. The highest abundance of the species occurs mainly in tussock grasslands and shrublands where
overgrazing by domestic and feral stock is sparse or absent, and often where there are drainage lines in natural vegetation which tend to improve the availability of food and shelter. The species shelters under rocks and logs, in cracks in the soil and in tussock grass. A study has found that the species is capable of successfully surviving and reproducing in small remnants of native vegetation which are fenced to prevent large herbivores from grazing. However, adults of the dunnart were not detected in the grazing area surrounding the non-grazed habitat. Several factors can be attributed to this finding, that the greater diversity and cover of vegetation may increase arthropod biomass providing a more guaranteed supply of food for the dunnarts. The denser vegetation cover in the non-grazed sites provides more protection from predators and the absence of livestock reduces soil compaction, allowing for an entire network of soil cracks that provide favourable refuges and foraging sites for the species. ==Social organisation and breeding==