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Understanding the diurnal and nocturnal activity of organisms is a key topic in behavioral ecology, with implications for population structure and management strategies. In reef systems, parrotfishes play crucial roles as nominal herbivores, but overfishing has led to population collapses with detrimental effects on reef functions. Parrotfish are good models to study diel rhythms, as they are often easily observed while sleeping at night. We assessed the distribution, sleeping substrate selectivity and sleeping areas of parrotfishes during the night in a subtropical rocky reef of the Southwestern Atlantic. We performed replicated visual censuses (50 × 2 m) at different depths to estimate parrotfish abundance, while quantifying the structural complexity of sleeping sites. Among the seven recorded parrotfish species, we focused on the four most abundant to determine their sleeping habitat selectivity. Active telemetry was used for the two most abundant species to define their sleeping site areas and sleeping hotspots. All four species exhibited a preference for sediment as a sleeping substrate, while avoiding zoanthids. Species distribution was influenced by depth, with Scarus zelindae predominantly sleeping in high-complexity substrate at intermediate depths and Sparisoma tuiupiranga sleeping in the rock–sand interface at deeper depths. Tagged Sparisoma axillare and Sparisoma frondosum exhibited similar sleeping areas in terms of size and geographical locations; showing high site fidelity, they returned to the same sleeping sites over consecutive nights. These results represent the first assessment of parrotfish distribution and habitat use at night in the Atlantic. This information is crucial for guiding management actions, particularly in the planning of no-take zones for fishing control and population recovery.