This widespread species occurs naturally throughout southeast Asia. It may be found in the Mekong River basin in southern China, Vietnam, Laos, Cambodia, Thailand, Myanmar, Malaysia, Sumatra, Java, and Kalimantan. Outside of its native range, it has been introduced in Sulawesi, Philippines, Taiwan, Papua New Guinea, and the islands of Reunion, Seychelles, Namibia, the Dominican Republic, Puerto Rico, and Colombia. The blue gourami frequents shallow lowland marshes, swamps, and peatlands, but may also be found in streams and canals or, during flood season, in flooded forests.
