The African grass owl is found in moist grassland and open savanna up to an elevation of . In east Africa it may also be found in dry grassland and at higher altitudes in Aberdares and on Mount Kenya. In southern Africa this species generally prefers marshes and vleis where there are patches of tall, rank grass and other vegetation but it may also be found in fynbos, renosterveld and acacia scrub close to water. The specific habitat requirements of the African grass owl characterize it as a habitat specialist.