This species occurs in Indo-Pacific region: Nansei-shoto in Japan, Hong Kong, Thailand, Peninsular Malaysia, Singapore, Jawa in Indonesia, Philippines, Papua New Guinea, Queensland in Australia, India and Sri Lanka. It also occurs in American Samoa, Cook Islands, Fiji, French Polynesia, Guam, New Caledonia, Samoa, Solomon Islands and Vanuatu.
The coloration pattern on the shell is very variable. Clithon oualaniense is a eurybiotic species. It inhabits soft bottoms of interdidal habitats. It can occur in high density, for example 347 snails per m² was recorded, that correspond to the biomass of 30.6 g per m². It also inhabits sea grass bed with Zostera japonica.
The activity of Clithon oualaniense is diurnal; snails are active during the daytime and inactive at night. It bury itself into the mud, when the tide is high, probably to avoid water predators. They are on the surface feeding and mating when the tide is low. Clithon oualaniense is herbivorous, feeding of microalgae and on detritus.
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