Superb Fairy-wrens are endemic to Australia. They populate only the east and south-east of the Australian continent. They are also found on the islands across Bass Strait and in Tasmania.
Superb Fairy-wrens can be found in different habitats, e.g. in dense coastal growth and also reeds in swamps and around lakes, but (in the interior) also in open grassland in tall grass or weeds, often by roadsides.
They adapt easily to the presence of humans and are also found around farms and gardens.