The Cock-tailed Tyrant is classified as VULNERABLE. Its numbers have been in rapid decline due to extensive loss of its required habitat, namely seasonally wet and dry grassland featuring tall grasses as seen in the photos.

They are to be found in a few remaining areas of suitable habitat such as the Emas and Serra da Canastra National Parks in Brazil, San Rafael National Park in Paraguay and in some scattered locations in Bolivia. See the distribution map at xeno-canto.