Sloths live in the rainforest ecosystems found throughout Central and South America.
All living species of sloths are arboreal mammals, found in the rainforest canopy. They require warm and humid conditions, and so are only found within 17° of the equator in South and Central America.

The persistence of sloths in high-altitude montane regions within this range is still poorly documented.
Sloths prefer undisturbed primary and secondary rainforests and are able to thrive in agroforestry ecosystems (for example, cacao farms). They can sometimes also be found in urban areas in regions where development has been recent and rapid.
Individual sloths are often uniquely adapted to survive in the area where they originate from in terms of habitat preference.