Golden-shouldered Parrots were once well distributed on Cape York Peninsula but are now restricted to a few small, separate populations and are regarded as endangered - maybe as few as 3000 birds. In the past, trapping was one of the main causes for this decline, but inappropriate fire regimes are now considered the current threat.

Golden-shouldered Parrots make their nest hollows in termite mounds - various types of mounds are used but the majority are in conical mounds. The nest tunnel and chamber takes several days to excavate, mainly by the female and within a week, she begins laying the clutch of five to seven eggs. The young leave the nest at approx. five weeks of age and are dependent on their parents for the next couple of months. They then form small flocks of up to 30 birds or so.