The Bay-capped Wren-Spinetail lives in salt marshes of southeastern South America. In a measured sample, males tended to have a longer rufous cap and a more robust bill than females.
In the sexed sample, males had a longer rufous cap than females and tended to have more robust bills.
At a southern Brazilian salt marsh, a nest was found at the base of a Spartina densiflora tussock, and adults carried small insects to the nestlings.
An extinction-risk assessment has not been added yet.