As its common name suggests, the band-tailed earthcreeper spends most of its time on the ground, running rapidly between bushes and rocks, usually with the tail held high, but generally avoiding open areas (4) (5). Individuals sometimes perch conspicuously on top of a bush when singing, but more usually remain hidden (4). Most foraging is solitary, or in pairs (2) (5). The diet of the band-tailed earthcreeper comprises mainly arthropods, which it probes for or gleans from the ground, from around stones or in rock crevices, in grass clumps or in vegetation (2) (4).
Breeding occurs during the summer, possibly from September. The species is presumed to be monogamous, and builds a large, domed nest in a bush or cactus, about one to two metres above the ground (2) (6). Built from interwoven thorny sticks, the nest may measure around 55 by 30 centimetres, with an entrance tunnel about 25 centimetres long which leads to a rounded chamber, the floor of which is a woven mat of grasses, topped with hair, spider webs, dry flowers and feathers (2). Interestingly, this structure differs quite markedly from the nests of all other members of the Furnariidae family (6). Clutch size is two to four eggs (2).