Xanthomyza phrygia is endemic to south-east Australia. Most sightings come from a few sites in north-eastern Victoria, along the western slopes of the Great Dividing Range, New South Wales, and the central coast of New South Wales. Birds are regularly reported in small numbers in the Australian Capital Territory and far south-east Queensland. It has become extinct in South Australia and has declined to vagrant status in central and western Victoria, and Gippsland. Birds concentrate at a small number of sites when breeding, but numbers fluctuate greatly between years and sites. Movements outside the breeding season are poorly understood. At two sites in 1997, there were an estimated maximum of 1,000 birds but, in 1998, far fewer birds were seen and no breeding was observed.