Seadragons live in the neritic zone, specifically the shallow coastal waters of the temperate regions of Australia. This zone is characterized by sunlight reaching the seafloor, allowing for photosynthesis and supporting a diverse range of marine life.

While they are found in the neritic zone, it's important to note that seadragons prefer kelp forests and seagrass meadows where they can camouflage themselves and find food. They are not found in open water, and their range is limited to the southern and western coasts of Australia.