Todiramphus lazuli occurs in Indonesia, where it is restricted to the island of Seram, as well as small adjacent islands of Ambon and Haruku (BirdLife International 2001). Although it is common in some areas, it is sparsely distributed and absent from many sites with apparently suitable habitat (Poulsen 2004). It occurs largely on the coast, and is apparently absent from much of the interior of Seram.

This species is recorded from forest edges, secondary growth and cleared areas with scattered trees (habitat that is gradually increasing in extent). Many recent records also come from open farmland, and there are apparently no records from the interior of primary forest (Poulsen 2004). It nests in arboreal termite nests, many of which are now found in coconut plantations (Poulsen 2004).

You can hear some sound recordings of this beautiful bird here.