The white-winged fairywren is well adapted to dry environments, and M.l. leuconotus is found throughout arid and semi-arid environments between latitudes 19 and 32oS in mainland Australia. It occupies coastal Western Australia from around Port Hedland south to Perth, and stretches eastwards over to Mount Isa in Queensland, and along the western parts of the Great Dividing Range through central Queensland and central western New South Wales, into the northwestern corner of Victoria and the Eyre Peninsula and across the Nullarbor. It commonly cohabits with other species of fairywren, including the purple-backed fairy-wren (M. lamberti assimilis). White-winged fairywrens often inhabit heathlands or treeless shrublands dominated by saltbush (Atriplex) and small shrubs of the genus Maireana, or grasses such as tussock grass (Triodia) and cane-grass (Zygochloa), as well as floodplain areas vegetated with lignum (Muehlenbeckia florulenta). M. l. leucopterus inhabits similar habitats on Dirk Hartog Island and M. l. edouardi does the same on Barrow Island. The white-winged fairywren is replaced to the north of its range on mainland Australia by the red-backed fairywren.