It is threatened by the extensive lowland deforestation (degraded swampy forest) which is taking place within its range.
Otus sagittatus is known from Tenasserim, Myanmar, peninsular Thailand, peninsular Malaysia and northern Sumatra, Indonesia. It is found in evergreen forest and suspected (but not proved) to be an extreme lowland specialist, although it has been recorded to 600 m.
Otus sagittatus is listed as "Vulnerable" by the IUCN Red List.