The banded archerfish occurs primarily in brackish mangrove swamps, but also enters rivers and small streams. It occurs near overhanging vegetation or reefs, usually in small groups. Both juveniles and adults feed on a variety of insects, spiders and vegetable matter.
The banded archerfish is able to hit targets with a high degree of accuracy, despite refraction of light in the water. It is believed that they are able to achieve this level of accuracy by positioning their bodies to shoot from directly under the intended target. Its mouth is adapted to spit jets of water over distance, usually to knock prey into the water. Banded archerfish is also able to capture prey by jumping out of the water and seizing it from low overhanging branches.