These small reef fish are usually found as a bright orange colour with three white bands outlined in very fine black lines, but regionally some are a darker red-orange or even black with white bands. Each fish forms a relationship with a specific sea anemone, acclimating its protective mucous to the anemone’s stinging tentacles. They are protandrous hermaphrodites and live in small groups, so the largest fish is female, the second largest fish is the breeding male, and the smaller fish are non-breeding males. If the female dies, the largest male becomes the female, and the next largest male becomes the breeding male. The clown anemonefish is often confused with the orange clownfish. The clown anemonefish is referred to as an anemonefish due to its symbiotic relationship with sea anemones. Other English language common names include common clownfish, false-clown anemonefish, nemo, and western clownfish.

This fish is not harvested for human consumption, however they are often displayed in salt water aquariums due to their high survival rate in captivity. The clown anemonefish is also successfully raised in aquaculture facilities which decreases the pressure on wild populations to supply the saltwater aquarium trade.

The clown anemonefish is a non-migratory species that lives in tropical, marine habitats associated with rocky or coral reefs. They are found at a depth range of 10 to 50 feet (3 to 15 m). They form symbiotic associations with the anemones Heteractis magnifica (most commonly), Stichodactyla gigantea, and Stichodactyla mertensii.

Anemones provide protection for these fish as well as their nests. In return the anemone may benefit from fish consumption of parasites and increased water circulation from the fanning action of the fish’s fins. Anemonefishes have mucous covering which protects them from the sting of anemone tentacles. Acclimation must occur before a fish is immune to the stinging tentacles. This is achieved by the fish swimming around the anemone and rubbing its ventral side and fins on the tentacles.