Barred Parakeet is a resident of montane regions from southern Mexico south to western Panama, and again from Venezuela south to Peru. In Mexico, occurs at least north to Veracruz, south through Oaxaca and Chiapas to Guatemala, Honduras, and northern Nicaragua (Howell and Webb 1995, Martínez-Sánchez and Will 2010), and again in the highlands of Costa Rica and western Panama (Wetmore 1968, Ridgely and Gwynne 1989, Stiles and Skutch 1989). Friedmann et al. (1950) reported specimens (said to be in the Museo Nacional de Historia Natural, Mexico City) of Barred Parakeet from Guerrero, southwestern Mexico; Howell and Webb (1995) cast doubt on this record (but do not mention any attempt to locate and examine the relevant specimens). Barred Parakeet occurs locally in the coast ranges of Venezuela, and more extensively in the Andes of Venezuela in Táchira, Mérida and Trujillo (Hilty 2003), and in the adjacent Andes of northeastern Colombia in Norte de Santander and eastern Huila (Hilty and Brown 1986). Elsewhere in Colombia Barred Parakeet occurs in the Sierra Nevada de Santa Marta, and locally in the Western and Central Andes (Hilty and Brown 1986), south along both slopes of the Andes in Ecuador; in western Ecuador, reported south to Loja (Ridgely and Greenfield 2001). Barred Parakeet is local in Peru, but there are records along most of the east slope of the Andes of Peru south to Cuzco (Schulenberg et al. 2010). Barred Parakeet also recently has been found in Bolivia, where there now are records from La Paz, Cochabamba, and Santa Cruz (Herzog and Kessler 2000, Mayer 2000, Hennesey et al. 2003, Maillard 2005).
The elevational range of Barred Parakeet in Mexico is 900-2400 m (Howell and Webb 1995); in Colombia is 1100-2600 m (but mostly above 1600 m; Hilty and Brown 1986); 900-2200 m in Venezuela (Hilty 2003); 1700-3100 m in Ecuador (Ridgely and Greenfield 2001); and 900–3300 m in Peru (Schulenberg et al. 2010).
Barred Parakeet broadly speaking is resident, but at least locally is nomadic, as in the Venezuelan Andes (Hilty 2003) or in western Panama (Ridgely 1981). Barred Parakeet also undertakes diurnal flights downslope to feed (in the Valle del General, Costa Rica; Stiles and Skutch 1989).