Lowland areas of north-eastern Bolivia (eastern Pando, eastern La Paz, eastern Cochabamba, Beni, Santa Cruz), adjacent Brazil (eastern Rondônia, south-western Mato Grosso) and extreme north-eastern Paraguay.
 
Population
Estimated population is unknown (2010).
Fawn-breasted Wren (Cantorchilus guarayanus) [XC231044]
by Ross Gallardy from Transpantaneira, Mato Grosso, Brazil (call)
Fawn-breasted Wren (Cantorchilus guarayanus) [XC296320]
by Ross Gallardy from Jardin Botanico Santa Cruz, Bolivia (call)
Subspecies
No subspecies.
Forms a superspecies with Buff-breasted Wren (Cantorchilus leucotis), Superciliated Wren (Cantorchilus superciliaris) and Long-billed Wren (Cantorchilus longirostris) and sometimes regarded as conspecific with Buff-breasted Wren (Cantorchilus leucotis), although vocalizations quite distinct.