The Red Eyed Tree Frog lives in the canopy of the rainforest. They spend their days catching bugs, and their nights sleeping on the underside of leaves. tree frog will live in the Understory (2nd layer) or Undercanopy (which ever you prefer), and the forest floor(1st layer). They never come up to the Canopy as there is no fo … od for them there also predators can easily spot them.