The turquoise parrot is monogamous. The male perches upright on a tree stump and extends its wings to show off its red and blue markings when courting a female. Once paired, both sexes look for a nesting site, which is ultimately chosen by the female. Breeding has been reported from Girraween National Park on the New South Wales–Queensland border in the north to Wangaratta and Mallacoota in Victoria. Birds use vertical or nearly vertical hollows of live and dead trees, generally eucalypts, as nesting sites. Occasionally old fence posts have been used. The turquoise parrot competes with—and may be ousted by—the eastern rosella ("Platycercus eximius"), red-rumped parrot ("Psephotus haematonotus") and brown treecreeper ("Climacteris picumnus") for suitable breeding sites. The tree containing the hollow is often located in open woodland, and the hollow itself is generally at least 1 m (3 ft) above the ground. Fieldwork in northern Victoria yielded average dimensions of 10 by 6 cm (4 by 3 in) for the hollow entrance, and a depth of around 50 cm (20 in) for the depth of the hole. Elsewhere the average depth is around .