Turdus grayi, commonly known as the Clay-colored Thrush, is native to the tropical and subtropical regions of Central America. Its geographical distribution extends from southern Texas in the United States, through Mexico, and into countries such as Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica, and western Panama.

The Clay-colored Thrush typically inhabits a variety of environments within its range, including forests, woodlands, gardens, and agricultural areas. It is commonly found in humid, tropical climates with abundant rainfall, although it can also adapt to suburban areas with sufficient tree cover.

Turdus grayi often occupies the understory and mid-levels of forests, where it forages for insects, fruits, and small invertebrates. The species has adapted to a broad range of habitats due to its versatile diet and ability to thrive in both natural and disturbed environments. It plays a crucial role in seed dispersal, contributing to the ecological balance of its native habitats.