The Tibetan fox is restricted to the Tibetan Plateau in western China and the Ladakh plateau in northern India. It occurs north of the Himalayas in the northernmost border regions of Nepal and India, across Tibet, and in parts of the Chinese provinces of Qinghai, Gansu, Xinjiang, Yunnan and Sichuan. It primarily inhabits semi-arid to arid grasslands, well away from humans or from heavy vegetation cover. It lives in upland plains and hills from elevation, and has occasionally been sighted at elevations of around .